What characteristics must good money have quizlet? (2024)

What characteristics must good money have quizlet?

What are the six characteristics of money? durability, portability, divisibility, uniformity, limited supply, and acceptability.

Which is the characteristics of good money?

2. In order for money to function well as a medium of ex- change, store of value, or unit of account, it must possess six characteristics: divisible, portable, acceptable, scarce, durable, and stable in value.

What are the 4 characteristics of money quizlet?

What are the 4 characteristics of money?

In general, there are four main characteristics that money should fulfill: durability, divisibility, transportability, and inability to counterfeit.

What are the three main characteristics of money?

To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.

What is the most important characteristic of money and why?

In order to be most useful, money should be fungible, durable, portable, recognizable, and stable. These properties reduce the transaction cost of using money by making it easy to exchange.

What characteristics does anything to be recognized as money it needs to have?

Money is defined as a unit of measure that is generally accepted and recognized as a medium of exchange in the economy. For a commodity or currency to be recognized as money, it must be fungible, stable, recognizable, portable, and durable.

What are the characteristics of the economy?

Economic characteristics considered

(a) Labour force status (employment and unemployment); (b) Employment status; (c) Occupation/'type of work'; (d) Industry/branch of economic activity; (e) Place of work (location and type); (f) Non-core topics, e.g., hours worked, source of livelihood, household income etc).

Is not a characteristics of money?

Expert-Verified Answer

The correct answer is B) Lack of divisibility.

What are the five characteristics of money quizlet?

What are the basic functions and characteristics of money quizlet?

- You can sell something, such as labor, and store the purchasing power that results from the sale in the form of money for later use. Money must be able to withstand the wear and tear of being passed from person to person. Paper money lasts one year on average; coins last for many years. Easy to carry.

What characteristics define the money markets quizlet?

The money markets can be characterized as having securities that trade in one year or less, are of large denomination, and are very liquid. Is a Treasury bond issued 29 years ago with six months remaining before it matures a money market instrument?

What are the four 4 functions of money explain?

Money serves several functions: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.

What are the three characteristics of money quizlet?

What are the 5 advantages of money?

What are the three types of money?

Economists differentiate among three different types of money: commodity money, fiat money, and bank money. Commodity money is a good whose value serves as the value of money. Gold coins are an example of commodity money. In most countries, commodity money has been replaced with fiat money.

What gives money value?

Summary. Currency value is determined by aggregate supply and demand. Supply and demand are influenced by a number of factors, including interest rates, inflation, capital flow, and money supply.

Which characteristic of money relates to its long lasting properties?

Durability: Any item used as money must be durable. A perishable item such as a banana becomes useless as money when it spoils. Even early societies used durable forms of money, such as metal coins and paper money, which lasted for a long time.

How is money divisible?

Answer and Explanation: To say that money is divisible is to say that a unit of currency can be broken down into smaller units to facilitate exchange.

How did money evolve?

The barter system likely originated 6,000 years ago. The first coin we know of is from the 7th century BC and the first paper money came into the world around 1020 AD. Eventually, medieval banking systems gave way to the gold standard, which in turn gave way to modern currency.

What is not a characteristic of money responses?

Expert-Verified Answer

Money is able to be stretched is not a characteristic of money.

Which of these are not two of the desirable characteristics of money?

ability to be duplicated and non-divisibility are non desirable characteristics of money. Explanation: some of the characteristics of money: Durability: Although a cow is generally resilient, a long journey to market increases the likelihood that it will become ill or die, which will significantly lower its value.

Why are checks not money?

By defini- tion, currency and demand deposits are money, while checks, credit and debit cards are not. This is because currency and checking deposits are their owner's assets, whereas a check or a credit/debit card is not a part of its owner's assets. transactions, though it is not a medium of exchange.

What are the characteristics of a stable economy?

As a result, many economists tend to characterize an economically stable region as one, which has consistent real GDP growth, low unemployment and high personal income levels.

What are the main characteristics of a developing economy explain?

A developing economy defines a country with a low human development index, less growth, poor per capita income, and more inclined toward agriculture-based operations rather than industrialization and business.