What is the main purpose of money?
Money's most important function is as a medium of exchange to facilitate transactions. Without money, all transactions would have to be conducted by barter, which involves direct exchange of one good or service for another.
What makes money valuable economics quizlet?
store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance. The amount of goods and services that a monetary unit of income can buy.
What are the three main purposes of money?
To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.
What is money Economics quizlet?
Means for comparing values of goods and services. Store of Value. Something that keeps it value if it's stored rather than used. Currency. Coins and paper bills used as money.
How do we know our current money has value?
How do we know our current money has value? People accept it in exchange for goods or services. Which statement shows that money is a "store of value?"
What is commodity money Economics quizlet?
Commodity Money: A good that is used as a medium of exchange but also has intrinsic worth because it has other uses. Gold or silver coins are commodity money.
What might cause a change in the value of fiat money quizlet?
What might cause a change in the value of fiat money? they do not want to carry around large amounts of cash.
What is wealth quizlet?
Wealth: refers to all of a person's or families material assets including income, property ownership, stocks, inheritance etc.