ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Acceptable
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Divisible
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Scarce
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Uniform
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Detailed explanation-1: -Crowther defines money as ‘anything that is generally acceptable as a means of exchange and at the same time acts as measure and store of value. ‘
Detailed explanation-2: -Commodity money has intrinsic value because it has other uses besides being a medium of exchange. Fiat money serves only as a medium of exchange, because its use as such is authorized by the government; it has no intrinsic value.
Detailed explanation-3: -The most common and generally accepted medium of exchange in the modern economy is money – represented as currency. A medium of exchange should have a consistent intrinsic value, be interchangeable, transportable, and reliable.
Detailed explanation-4: -The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.