The characteristics of money are durability, portability, divisibility, uniformity, limited supply , and acceptability.
Which of the following is a characteristic of money a?
The characteristics of money are durability, portability, divisibility, uniformity, limited supply , and acceptability.
Is scarcity a characteristic of money?
There are nine distinct characteristics of money: scarce, durable, portable , divisible, easy to recognize, easy to store, fungibile, hard to counterfeit, and widespread use. ... Gold – this it is being used here as an example of a commodity money.
What is durability money?
Durable: An item must be able to withstand being used repeatedly . Acceptable: Everyone must be able to use the money for transactions. Uniform: All versions of the same denomination must have the same purchasing power. Limited in Supply: The supply of money in circulation ensures values remain relatively constant.
What is uniformity money?
Uniformity. Every bill and coin of the same value needs to look the same. Money must be uniform in that one $20.00 bill and another $20.00 bill must be able to buy the same thing . •
What are the 10 characteristics of money?
- Medium of Exchange. First and foremost, money acts as a medium of exchange that facilitates commercial transactions. ...
- Store of Value. Money can be used to store value for later use. ...
- Unit of Account. ...
- Legal Tender. ...
- Standard of Deferred Payment. ...
- Liquidity. ...
- Stability of Value. ...
- Interchangeable.
What are the qualities of good money?
- General acceptability.
- Portability.
- Durability.
- Divisibility.
- Homogeneity.
- Cognizability.
- Stability.
What is an example of scarcity?
Scarcity exists when there is not enough resources to satisfy human wants. One of the most widely known examples of resource scarcity impacting the United States is that of oil . As global oil prices increase, local gas prices inevitably rise.
What are the 3 types of scarcity?
Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural .
What are the 4 factors of production?
Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship . The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land.
What are the 4 types of money?
Economists identify four main types of money – commodity, fiat, fiduciary, and commercial . All are very different but have similar functions.
What are the four functions of money?
whatever serves society in four functions: as a medium of exchange, a store of value, a unit of account, and a standard of deferred payment .
What are the 3 types of money?
- Physical money. Physical money, meaning cash and coins, is created by the US Treasury. ...
- Central bank reserves. Central bank reserves are a type of electronic money, created by the Federal Reserve and used by banks to make payments between themselves. ...
- Commercial bank money.
What are the sources of money’s value?
- Money comes in three forms: commodity money, fiat money, and fiduciary money. ...
- Commodity money derives its value from the commodity of which it is made, while fiat money has value only by the order of the government.
- Money functions as a medium of exchange, a unit of account, and a store of value.
What gives our money value?
The value of money is determined by the demand for it , just like the value of goods and services. There are three ways to measure the value of the dollar. The first is how much the dollar will buy in foreign currencies. That’s what the exchange rate measures.
What are the five uses of money?
There are only really 5 things we can do with money. We can use it to live, we can give it, we can repay debt, we can pay taxes, or we can save/grow it . It’s important to know how your money is being allocated among these categories because this will show us our priorities.
