True/False
Money can only function as a medium of exchange
False
List the three uses of money
1. Money as a medium of exchange
2. Money as a unit of account
3. Money as a store of value
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List the six characteristics of money?
1. money is durable
2. money is portable
3. money is divisible
4. money is uniform
5. There is a limited supply
6. money is an acceptable form of payment
What is the role of money when you can use it to compare the values of goods and services.
Unit of account
Bartering does not require you to have any cash.
True
Name the characteristic of money in which coins can last a long time in circulation.
Money is durable
One of the characteristics of money is that it is durable. Why is it important that money is durable?
If money wears out, it cannot be trusted to serve as a store of value.
When an economy experiences inflation, money can still function as a store value.
False
Name the characteristic of money when twenty dollar bills are easy to carry around in a wallet or pocket?
Money is portable
Explain why cattle can not be used as money today.
Cattle would be very difficult to control the quantity. Transporting it would be very difficult if certificates weren't exchanged. Mad Cow disease could be very dangerous and spread around.
The characteristic of uniformity means that bills of the same denomination not only look exactly the same, but also have the same value and are accepted equally in transactions."
True
what is the characteristic of money when a ten dollar bill can purchase a five dollar item, with five dollars change coming back?
Money is divisible
What are the denominations of the Saudi currency?
The currency comes in both coins and banknotes. The coins come in denominations of 1 and 2 riyals as well as 25, and 50 halala. The denominations of banknotes are 1, 5, 10, 20, 50, 100, 200, and 500 riyals.