importance of money Flashcards
characteristics of money
durable- hard wearing
acceptable- people must agree to use it
exchangeable- it can be exchanged for goods and services
divisible- it is possible to divide it into smaller units
scarce- its value is maintained when its harder to acquire
portable- bust be convenient to carry
homogenous- notes of a particular value must look the same
what are the functions of money ?
medium of exchange- makes the exchange of goods and services easier and it makes barter unnecessary.
a measure of value- money can be used to state prices.
a store of value- money can be saved whereas goods often cannot
a standard of postponed payment- money can be earned at one time and spent at another
e-commerce
the buying and selling of products through an electronic medium such as the internet
