What is money?
What is the first function of money?
Medium of exchange
What are the 4 things money should be?
Durable, Divisible/Countable, Portable, and Scarce
What is the second function of money?
Store of Value
What does it mean for money to be durable?
The item used as money has to last.
What is the third function of money?
Unit of Account
What does it mean for money to be divisible and countable?
Item must be able to be subdivided.
What is the third problem of money?
Disputes over value
What does it mean for money to be portable?
The item has to be easy to move from place to place.
What is the second problem of money?
Assets don't last
What does it mean for money to be scarce?
Must be hard to make.