ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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easily standardized, making it easy to ascertain its value.
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difficult to make change.
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deteriorate quickly so that its supply does not become too large.
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hard to carry around.
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Detailed explanation-1: -easily standardized, making it easy to ascertain its value . it must deteriorate quickly . If a commodity deteriorates quickly, then it will not have a store of value, which is the function of money. be generally acceptable as payment for goods and services or in the repayment of debt .
Detailed explanation-2: -The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.
Detailed explanation-3: -For a commodity to function effectively as money it must meet which 5 criteria? 1) It must be easily standardized, 2) It must be widely accepted, 3) It must be divisible, 4) It must be easy to carry, 5) It must not deteriorate quickly. Function of money. Used to save purchasing power over time.
Detailed explanation-4: -Commodity money’s value is found in the intrinsic value of commodities. The fact that commodities can be used to produce products of value and not just as means of exchange is what makes commodity money valuable which is defined as intrinsic value.
Detailed explanation-5: -Money acts as a standard of value by making it easy for people to compare the value of different goods and services according to a uniform reference point. Money can also be used as a store of value to make transactions more efficient.