demand deposits and smart cards are money. (because they are a medium of exchange), and why checks, money orders, or debit and credit cards are not money (because they are only a means of payment but not a medium of exchange). 1. Introduction. What is money?
What defines money?
Money is a commodity accepted by general consent as a medium of economic exchange. It is the medium in which prices and values are expressed. It circulates from person to person and country to country, facilitating trade, and it is the principal measure of wealth.
What are two definitions of money?
1 : an accepted or authorized medium of exchange especially : coinage or negotiable paper issued as legal tender by a government. 2a : assets or compensation in the form of or readily convertible into cash.
What is not money function?
Therefore, power indicator is not a function of money.
What are the 4 common definitions of money?
In Money and the Mechanism of Exchange (1875), William Stanley Jevons famously analyzed money in terms of four functions: a medium of exchange, a common measure of value (or unit of account), a standard of value (or standard of deferred payment), and a store of value.
Which is not a characteristic of money?
The correct answer is Option C) The supply of Money remains fixed. Good Money has many characteristics like Stability, homogeneity, profitability, divisibility, durability, etc. The supply of Money is not included in the characteristics of Money.
Which one of the following is not a feature of money?
The correct answer is B) Lack of divisibility.
What is characteristics of money?
The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.
What are the 3 main functions of money?
Money is often defined in terms of the three functions or services that it provides. Money serves as a medium of exchange, as a store of value, and as a unit of account. Medium of exchange.
What are the 4 physical characteristics of money?
The four primary characteristics of money are: (1) durability, (2) divisibility, (3) transportability, and (4) noncounterfeitability.
What are the 3 types of money?
Economists differentiate among three different types of money: commodity money, fiat money, and bank money.
What are the types of money?
The various types of money are:
- Commodity Money.
- Fiat Money.
- Fiduciary Money.
- Commercial Bank Money.
- Metallic Money.
- Paper Money.
- Reserve Money.