Functions of Money
This is the primary function of money.
medium of exchange
10-15 percent of the US money supply is in this form.
cash or physical
This form of financial exchange includes physical forms of currency such as banknotes.
cash
These two forms of financial exchange are easy to carry and widely accepted for everyday purchases.
Debit and credit cards
This act is the illegal imitation or reproduction of currency, documents, goods, or other items with the intent to deceive or defraud by passing them off as genuine.
counterfeiting
In this system goods and services are exchanged for other goods and services without the use of money.
barter system
This type of money has intrinsic value due to its physical properties.
commodity money
Debit cards and checks are forms of financial exchange that take money from this account.
checking account
This form of financial exchange allows for exchanges to be private without an intermediary.
Cash
One or both of these factors was required for early forms of money.
inherent value and/or community acceptance
These two functions of money allow an individual to save up to buy a car and then compare the price of two different cars.
This type of currency is backed by trust in the issuer.
This form of financial exchange happens instantly through the banking system.
This form of financial exchange can have serious, long lasting consequences if used irresponsibly.
credit cards
When money is officially sanctioned by the government for payment it is called this.
Limited money supply (a characteristic of money) helps prevent this economic phenomenon.
Using this system a country's basic unit of currency equals a certain quantity of gold.
This form of financial exchange stores your payment information (potentially for multiple payment methods) but not your money.
digital wallet
These two forms of financial exchange are easy to obtain by being available with a bank account.
debit cards and checks
This line of a check is used to communicate what the payment is for.
memo line
These 5 characteristics of money end in “ity”.
uniformity, divisibility, portability, acceptability, durability
Due to this reason the United States switched from the gold standard to fiat currency in 1971.
growth in money supply outpaced the supply of gold
This form of financial exchange operates within the bank system and processes financial transactions in batches making it efficient for direct deposits and payments.
In this form of financial exchange a payor gives this to the payee who then gives it to the payee's bank before conforming the payment with the payor’s bank.
check
Banks must maintain this for physical currency withdrawals.