Money Flashcards
1
Q
What is money
A
money is any commodity that is accepted for goods and services.
2
Q
What were the previouse forms of money
A
a) .Cowrie shells
b) . cattle
c) . salt and sugar
3
Q
What are the characteristics of money
A
- Acceptability
- relavantly scarce
- divisible
- homogeneous
- durable
- portable
4
Q
Homogeneous
A
This means it must be identical in look, size and weight
5
Q
Acceptable
A
Everyone must be willing to accept it.
6
Q
Divisible
A
This means it can make change.
7
Q
Relatively scarce
A
This means the quality should be controllable , if not the value will not be maintained
8
Q
Durable
A
Money should be long lasting.
9
Q
Portable
A
This means money should be able to carry around easily.
