ECONOMICS
SAVING AND INVESTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
They were easier to transport than banknotes.
|
|
|
They had all six of the main characteristics of money.
|
|
|
They could be used not only for money, but also for food.
|
|
|
They were guaranteed by the full faith and credit of the government
|
Detailed explanation-1: -Examples of commodity money are gold and silver coins. Gold coins were valuable because they could be used in exchange for other goods or services, but also because the gold itself was valued and had other uses. Commodity money gave way to the next stage-representative money.
Detailed explanation-2: -For a commodity or currency to be recognized as money, it must be fungible, stable, recognizable, portable, and durable. Different countries around the world use their own monetary systems, which are regulated by a central monetary authority.
Detailed explanation-3: -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.
Detailed explanation-4: -Durability. Durability. Portability. People need to be able to take money with them as they go about their business. Divisibility. To be useful, money must be easily divided into smaller denominations, or units of value. Uniformity. Limited Supply. Acceptability.