mid Flashcards
What early man’s needs was provided by its natural resources.
Direct Appropriation Stage
Goods and services directly exchange for other goods and services
- Barter/Direct (Exchange)
Difficulties of Barter:
- Product do not have the same value
- No double coincidence of wants
- Lack of store value
- It is cumbersome, inconvenient, and indivisible
Some goods because of its usefulness, beauty, scarcity, and rarity commands a wide acceptance as medium of exchange.
The Use of Commodity as Money
rice, corn, wheat, salt, tea, cattle) example of what kind of commodity
Non-Metallic
(gold, silver, copper. Intrinsic value or material value is equal it’s monetary value
Metallic Money
Money whose monetary value is more than its material or commodity value
Credit Money
comes from the Greek Word “Moneta
Money
gives money its Purchasing Power and Legal Tender Power
Law
A mandatory law that makes money accepted in payment for all kinds of services.
Legal Tender Power
Any form of money which according to law is acceptable for all forms of obligations
Legal Tender Power
Functions of Money
- As a Medium of Exchange
- As a Standard Unit of Value
- As a Standard of Deferred Payment
- As a Store of Value
money serves as a common medium or tool of exchange.
As a Medium of Exchange
money serves as a measuring device in which value of goods and services can be expressed. Thus, in turn standardize the value of goods and services.
As a Standard Unit of Value
The money that we use as a medium of exchange is the same money we can use to pay for our debts and obligations
As a Standard of Deferred Payment
