Table of Contents
What are the six characteristics of money quizlet?
Terms in this set (6)
- Durability. Durability.
- Portability. People need to be able to take money with them as they go about their business.
- Divisibility. To be useful, money must be easily divided into smaller denominations , or units of value.
- Uniformity.
- Limited Supply.
- Acceptability.
What are the 6 characteristics of the American economy?
Terms in this set (6) Consumers are free to consume whatever goods and services they can afford. Profit motivates produces to create goods and services. Competition among producers results in better quality products and a more efficient use of resources. An individual is free to buy whatever you have the money for.
What are the characteristics of good money?
The qualities of good money are:
- General acceptability.
- Portability.
- Durability.
- Divisibility.
- Homogeneity.
- Cognizability.
- Stability.
What are the 6 functions of money?
The following points highlight the top six functions of money.
- Function # 1. A Medium of Exchange:
- Function # 2. A Measure of Value:
- Function # 3. A Store of Value (Purchasing Power):
- Function # 4. The Basis of Credit:
- Function # 5. A Unit of Account:
- Function # 6. A Standard of Postponed Payment:
What are the 5 characteristics of pure capitalism?
Central characteristics of capitalism include capital accumulation, competitive markets, a price system, private property and the recognition of property rights, voluntary exchange and wage labor.
What are the characteristics of currency?
The characteristics of a currency are durability, portability, divisibility, uniformity, limited supply, and acceptability.
How many characteristics must money have?
Now that we know what the functions of money are, it’s time to take a look at its characteristics. In general, there are four main characteristics that money should fulfill: durability, divisibility, transportability, and inability to counterfeit.
What are the four functions of money?
Money can be in various forms, such as notes, coins, credit and debit cards, and bank checks. Traditionally, economists considered four main functions of money, which are a medium of exchange, a measure of value, a standard of deferred payment, and a store of value.
What are the functions of money economics?
In general terms, the main function of money in an economic system is “to facilitate the exchange of goods and services and help in carrying out trade smoothly.” Its basic characteristic is general acceptability.