Money (3.1) 0.0 / 5 ? EconomicsBarterFunctions of MoneyCharacteristics of MoneyIGCSEAll boards Created by: EmilyCreated on: 13-09-15 12:11 What is Barter? Barter is when people exchange the goods or services they have to get the goods they want (without using money) 1 of 15 What are three advantages of Barter? It is direct (you can trust the goods), simple and you don't need anything else 2 of 15 What are three disadvantages of Barter? It is hard to value/set prices for things, some things are hard to save up and the other person may not want your goods 3 of 15 What does Barter depend on? Barter depends on a Double Coincedence of Wants 4 of 15 What are the four functions of money? Medium of Exchange,Unit of account (measure of values), Store of Value, Standard for deferred payment 5 of 15 What does Medium of Exchange mean? It is used to buy/pay for things 6 of 15 What does Unit of account (measure of values), mean? We can express all prices in terms of money 7 of 15 What does Store of Value mean? Money retains its value over time so that if we save up, the money is still worth as much 8 of 15 What does Standard for Deffered Payment mean? This allows people who lend money to know and trust what they will get payed back in the future 9 of 15 What are the five characteristics of money? Acceptability, Divisibility, Durability, Portability, Scarcity 10 of 15 What is Acceptability? Everyone accepts it as a payment for goods 11 of 15 What is Divisibilty? It can be divided into small and large units 12 of 15 What is Durability? It doesn't wear out or decay? 13 of 15 What is Portability? It is easy to carry around or send to someone 14 of 15 What is Scarcity? It is hard to copy or duplicate so it remains scarce and valuable 15 of 15
Comments
No comments have yet been made