Topic 1; Purposes of money Flashcards
1
Q
What are the features of money?
A
- Acceptable
- Recognisable
- Scarce but sufficient
- Homogenuos
- Divisible
- Durable
- Portable
- Stable
2
Q
Form of exchange without using money
A
Barter
3
Q
What is a double coincidence of wants?
A
Both parties must want something the other has in order for bartering to be successful
4
Q
What is barter
A
To exchange goods and services for other goods and services without using money
5
Q
Forms of money that are worth something in their own right have…
A
Intristic value
6
Q
Using items of intrinsic value as money can be a problem because….
A
They do not have a constant value
7
Q
What does the term legal tender mean?
A
It means notes and coins that must be accepted to settle a debt
