What are the three main characteristics of money?
What are the three main characteristics of money?
The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.
What are the four functions of money can something be considered money if it does not fulfill all four functions?
1.3 What are the functions of money? Can something be considered money if it does not fulfil all the functions? The four functions are medium of exchange, unit of account, store of value and standard of deferred payment. In the long run something will not serve as money if it does not fulfil all four functions.
What are the four functions served by money?
Money serves several functions: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.
Which money is most economical in terms of its cost?
Answer. Explanation: gold money is very expensive in term of its cost because gold is the very expensive metal in the world it come in second number expensive than Platinum .
What are the 6 types of money?
Following are the main forms of money.
- Metallic Money.
- Paper Money.
- Bank Money.
- Legal Money.
- Plastic Money.
- Near Money.
- Metallic Money.
- A) Full Bodied Coins.
What are the role of money and its defects?
Large changes in the value of money are disastrous and even moderate changes have certain disadvantages. Inflation or fall in the value of money causes direct and immediate damage to creditors and consumers. On the contrary, deflation or rise in the value of money brings down the level of output, employment and income.
What are the two evils of money?
The two evils of money are economic defects and social effects of money.
What are the characteristics of a good money?
The qualities of good money are:
- General acceptability.
- Portability.
- Durability.
- Divisibility.
- Homogeneity.
- Cognizability.
- Stability.
How essential money is in our daily life?
Answer. Money is very crucial to our everyday lives. Basically money can provide you needs like shelter, food, clothes and etc for you to survive as a human being. It is very important especially dealing with emergency, less worries and temporary satisfaction or happiness.
Can a world function without money?
Can our current world with a global economy function without money? No, it can’t. Money is a method of assessing value in order to facilitate the exchange of goods and services.