Money and Budgeting

Money must be...

• Medium of Exchange

• Unit of Account

• Backed by Gold

• Store of value

Medium of Exchange...explain.

Unit of Account...explain

Store of Value...explain

Money has value because...

• It is made from rare and precious materials

• Governments can make more indefinitely without any consequences

• It is necessary for bartering exchanges

• People accept it as payment for goods ^ services

For something to work well as money it must be these 4 things in addition to being durable​ & stable: ​ ​ ​

• Precious

• Acceptable
• Divisible
• Scarce
• Portable

Explain why money(currency) needs to be Divisible

What does it mean that money needs to be Portable?

Explain why money(currency) needs to be Acceptable

Explain why money(currency) needs to be Scarce