Financial Institutions (Grade 8)

The ability for something to be used to purchase something else.

• Medium of exchange

• Measure of value

• Store of value

The ability to delay using money as a medium of exchange until later

• Medium of exchange

• Measure of value

• Store of value

The ability to measure the value of an item

• Medium of exchange

• Measure of value

• Store of value

Money can be divided into small units.

• Divisibility

• Portability

• Acceptability

Money can be movable from place to place.

• Acceptability

• Stable in value

• Portability

Money is manufactured with the materials which results to a long lasting medium.

• Acceptability

• Uniform in quality

• Durability

Money must act as an item being acceptable to all.

• Acceptability

• Scarcity

• Uniform in quality

Constraints on the amount of money in the monetary circulation ensure that values remain constant for the currency.

• Scarcity

• Stable in value

• Durability

All types of the same denomination of money must consist of purchasing power.

• Stable in value

• Uniform in quality

• Scarcity

What is money?