money Flashcards
1
Q
evolution of money
A
- barter
- commodity money
- representative money
-token money
2
Q
barter meaning
A
trading one good/service for another
3
Q
commodity money meaning
A
the first type of money
- had an intrinsic value of their own but do not require double coincidence of wants ( slaves, gold)
- use of money enables trade to take place more easily
4
Q
representative morny
A
money is backed by gold held in a bank ( or similar) but may be represented by something else for security and profitability
- early banknotes could be taken to the bank and exchanged for precious metals
5
Q
token money meaning
A
bears no relation to anything of any value, it exists for the most part modern cash and bank deposits
6
Q
functions of money
A
- a medium of exchange or means of payment
- a store of value
- a unit of account or measure of value
- standard of deferred payment
7
Q
characteristics of money
A
- difficult to forge
- divisible
- acceptable to all
- portable
- limited in quantity
- durabke
