Functions and Characteristics of Money

1. In bartering economies, people trade what they __________ for what they ___________.

• Own; buy

• Buy; sell

• Want; need

• Have; need

One of the disadvantages of operating a barter system is that trading is

• taking place without currency.

• carried out in very large markets.

• limited by availability and demand of goods traded.

• conducted without consumer protections.

_________________: a moneyless economy that relies on trade

• fiat

• commodity

• barter

• tallers

Money should be portable. This means:

• You can carry it easily.

• It was originally designed in a port.

• It is either rectangular or circular.

• It is made out of paper.

Money should be durable. This means:

• You cannot light it on fire.

• It must be tough so it doesn't break.

• It should be cheap to mass produce.

• It should be silver or gold.

Money should be limited. This means:

• You can control how much of it is in use.

• It shouldn't be too heavy.

• You should use items such as pebbles or leaves.

• It should be either rectangular or circular.

Money should be divisible. This means:

• You can use smaller pieces of it if you want.

• You can cut it in half and give both pieces to a vendor.

• If it's lost someone must return it to you.

• It must have a picture of a president on it.

Money should be durable, divisible, limited these are examples of?

• functions of money

• federal reserve notes

• formerly used currencies

• characteristics of money

Money is a medium of exchange, measure of value, and store of value these are examples of?

• functions of money

• federal reserve notes

• formerly used currencies

• characteristics of money

What is NOT a characteristic of money? 

• Divisible
• Portable
• Acceptable
• Accessible