ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Medium of exchange
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Lack of divisibility
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A store of value
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A unit of account
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Detailed explanation-1: -Answer: The correct answer is B) Lack of divisibility.
Detailed explanation-2: -Therefore, power indicator is not a function of money.
Detailed explanation-3: -The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.
Detailed explanation-4: -Divisible: Money is divisible means that money can be divided into small units and exchanged for goods and services. Divisibility is a crucial feature of money as it enables people to store value in silver and gold. Since money is divisible, it can be used to purchase all sorts of goods of different values.
Detailed explanation-5: -in fact, a variety of items have been used as money over the centuries. The items that worked the best tended to have four basic characteristics: portability, divisibility, durability, and acceptability.