ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Used as a store of value
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Backed by gold or silver
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Used as commodity money
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Acceptable in exchange for goods and services
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Detailed explanation-1: -The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.
Detailed explanation-2: -A medium of exchange is an instrument used to facilitate the exchange of goods and services. Money is a medium of exchange because it allows one party to compensate another without the complication of bartering.
Detailed explanation-3: -Portability is the ability of a good to be transported easily across space. Portability is an important feature of sound money; in order for a money to be widely adopted, and therefore usable, it must be able to move across borders, between individuals, and over long distances with relative ease.
Detailed explanation-4: -Durability is a necessary property of money because the money must be able to sustain its value over time. For this reason, beans, shells, livestock, or other objects previously used as money did not succeed overtime because they were not durable.