money

Question 1

what is money?

Answer 1

money is any commodity used as a medium of exchange

Question 2

what are the functions of money?

Answer 2

money is a medium of exchange, money is a standard of deferred payment, money is a store of value, money is a measure of value

Question 3

what are the characteristics of money?

Answer 3

durability, scarcity, portability, acceptability uniformity and divisibility

Question 4

what is bartering?

Answer 4

bartering is the act of exchanging items for one another using negotiation and bargaining

Question 5

what is a central bank?

Answer 5

the central bank is the monetary authority that manages and oversees a country’s money supply and banking system

Question 6

what are the functions of the central bank?

Answer 6

the sole issuer of banknotes and coins, the governments’ bank, the bank’s bank, the lender of last resort

Question 7

what is commercial banks?

Answer 7

it is a retail bank that offers financial services to its customers

Question 8

what are the functions of commercial banks?

Answer 8

accepting deposits,creating credits, and making advances