Money
Types of money
Fuctions of money
Characteristics of money
Definitions of money
Money is what money does;
Money is a current medium of exchange in the form of coins and banknotes;
Money is coins and banknotes collectively;
Money is the assets, property, and resources owned by someone or something.
Fiat money — paper money made legal tender by a government decree but not convertible into coins or precious metal
Commodity money — money that has an alternative use as an economic good.
Representative money — something that is not in the physical forms of currency, but represents the intent to pay money
Token money— a system of notes and coins where the value stated on them is much greater than the value of the material they are made from.
Electronic money (or e-money) - money that exists only in electronic form and substitutes for cash as well.
Medium of exchange — money or other substance generally accepted as payment for goods and services.
Store of value — a function of money that allows people to preserve value for future use
Measure of value — a function of money that allows it to serve as a common way to express value.
Standard of deferrred payment - an accepted way to settle a debt.
Stability -The value of money should be more or less the same today as tomorrow.
Portability - Money must be portable, or easily transferred from one person to another
Recognisability- Money must be widely accepted as a medium of exchange. Money should be easily recognized for what it is and hard to copy.
Uniformity- Equal denominations of money should have the same value.
Relarive scarcity- Finally, if something is to serve as money, it must be available, but only in limited supply
Sakharova Ira, FB-201
Durability - Money must be reasonably durable, so an item should retain the same shape, form, and substance over an extended period of time
Divisibility. One of the principal advantages of money is its ability to be divided into parts.