Features of Money

Functions of Money:
Money is something which people generally accept in exchange for a good or a service. Money performs four main functions:
• a medium of exchange for buying goods and services;
• a unit of account for placing a value on goods and services;
• a store of value when saving;
• a standard for deferred payment when calculating loans.
Properties or Characteristics of Money
Any item which is going to serve as money must be:
• acceptable to people as payment;
• scarce and in controlled supply
• stable and able to keep its value
• divisible without any loss of value
• portable and not too heavy to carry.
Origins of Money
The earliest method of exchange was barter in which goods were exchanged directly for other goods. Problems arose when either someone did not want what was being offered in exchange for the other good, or if no agreement could be reached over how much one good was worth in terms of the other.
Valuable......

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Title: Features Of Money
Approximate Word Count: 1255
Approximate Pages: 6 (250 words per double-spaced page)

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