Characteristics and Functions of Money

Which of the following is a function of money?

• Acceptable

• Portable

• Medium of Exchange

• Scarce

Money has to be accepted by everyone. Accepted means

• Long lasting

• Easy to carry

• Limited in supply

• Everyone agrees upon

One of the functions of money is that it must be easily recognized. Recognizable means

• Durable

• Identified

• Scarce

• Agreed upon.

Money must be durable. Durable means

• Long lasting

• Limited in supply

• Easy to carry

• Easily identified

Money must be scarce. Scarce means

• Unlimited in supply

• Easily identified

• Limited in supply

• Long lasted

Money must be portable. Portable means

• Easy to carry

• Long lasting

• Limited in supply

• Easily identified

Medium of exchange means

• Money enables people to buy and sell.

• Money gives value to goods and services

• Money enables people to save

• None of the above

Money gives price or value to goods and services. This function is

• Medium of exchange

• Unit of account

• Store of value

• Acceptable

Money enables people to save. This function is called

• Medium of exchange

• Unit of account

• Store of value

• Means of differed payment

The _________________ bank is the sole supplier of Money in New Zealand

• Westpac

• Kiwi Bank

• Reserve

• ANZ