Functions & Characteristics of Money

Question 1

The 4 functions of Money

Answer 1

Medium of Exchange
Store of Value
Unit of Account
Means of Deferred Payment

Question 2

Medium of…

Answer 2

…Exchange

Question 3

Store of…

Answer 3

…Value

Question 4

Unit of…

Answer 4

…Account

Question 5

Means of…

Answer 5

…Deferred Payment

Question 6

The 5 Characteristics of Money

Answer 6

Acceptability
Durability
Portability
Divisibility
Scarcity

Question 7

Anything can be used as money as long as everyone accepts it as a valid form of payment.

Answer 7

Acceptability

Question 8

The ability of dividing money into smaller values. This is why we have notes and coins with different face value.

Answer 8

Divisibility

Question 9

Notes & coins are light and small so they are easy to carry around.

Answer 9

Portability

Question 10

In order to keep its value, money must be limited in supply.

Answer 10

Scarcity

Question 11

Acceptability

Function or Characteristic?

Answer 11

Characteristic

Question 12

Store of Value

Function or Characteristic?

Answer 12

Function

Question 13

Durability

Function or Characteristic?

Answer 13

Characteristic

Question 14

Unit of Account

Function or Characteristic?

Answer 14

Function

Question 15

Portability

Function or Characteristic?

Answer 15

Characteristic