Characteristics & Functions of Money

Easily transferred from 1 person to another, to make the exchange of money for products easier.

• Durability

• Portability

• Divisibility

• Scarcity

Money has what if it doesn't deteriorate when it is being handled?

• Scarcity

• Divisibility

• Durability

• Portability

Money has what if it can be broken down into smaller units so it can be used as needed?

• Divisibility

• Portability

• Scarcity

• Durability

What is money if it is available but only in a limited supply?

• Portable

• Durable

• Divisible

• Scarce

Money or other substance generally accepted as payment for goods and services.

• Measure of value

• Medium of exchange

• Scarcity

• Store of Value

1 of the 3 functions of money that allows it to serve as a common denominator to measure value.

• Measure of value

• Store of value

• Divisibility

• Medium of exchange

1 of 3 functions of money allowing people to preserve value for future use.

• Store of value

• Divisibility

• Portability

• Measure of value

This can be used in place of money.

• Fiat money

• Federal reserve notes

• National currency

• Trading or bartering

Privately owned, publicly controlled, central bank of the U.S.

• National Bank

• Federal Reserve System

• State Bank

• Barter Economy

What are the 3 functions of money?

• Measure of Gold

• Store of Value

• Medium of Exchange

• Store of Bank Notes

• Measure of Value