Money
This is anything generally accepted as a means of payment
What is money
Another word for bartering
What is trading
Currency is valued/unique to its buyers and sellers
What is Scarcity?
This basic function of money means buying/selling goods
What is Means of Exchange?
The exchange of goods and services without the use of money.
What is Bartering.
Willingness to use currency
What is Acceptability?
This basic function of money mean comparing value of goods
What is Standard of Value?
Barter is time consuming due to these reasons.
- Have to find someone who wants what you have
-Livestock and other items are not divisible
-Items are not not portable
Easy to carry
What is Portability?
This function of money means holding the ability to buy things
What is Store of value?
If Kenny wants cloth, which Tyler has, then Kenny should have a commodity that Tyler wants in exchange for the cloth
What is coincidence of wants?
Good material that lasts for a long time
What is Durability?
This is another form of money other than cash
What are checks or credit cards?
Henry traded a ruby for a chair when chairs were highly demanded. He tried to trade the chair away 4 months later but no one wanted it. The chair was still in mint condition. Why did no one want the chair after 4 months?
What is difficulty in storing value
Must all look the same
What is Uniformity?