Characteristics of money Flashcards
including characteristics of money (8 cards)
1
Q
Store of Value
A
an asset or currency that retains its value over time without deteriorating
2
Q
Unit of Account
A
Provides a good measure of value
3
Q
Medium of Exchange
A
An instrument or system used to facilitate the sale, purchase or trade of goods between parties
4
Q
Divisible
A
Money can be divided into small increments so that it can match commodity values more precisely
5
Q
Acceptable
A
It must be accepted by individuals and buisnesses in society
6
Q
Stable
A
Money should maintain relatively stable value to be reliable over time
7
Q
Portable
A
money must be made easy to carry
8
Q
Durable
A
Money must withstand wear and tear
