The value and purpose of money

?
  • Created by: Bia_2002
  • Created on: 21-12-19 19:29
Explain the purposes of money
The main purpose of money is to make payments but it can also be used for saving to make payments in the future and to borrow and repay it later.
1 of 5
Outline 3 key features of money ( try to outline all 8 features)
Money needs to be: acceptable, to be widely accepted; durable, to be strong enough to be reused in many transactions; recognisable, needs to be easily identified as genuine money;
2 of 5
Explain the limitations of bartering
-It relies on a 'double coincidence of wants' where both parties have to agree on what they want; You may have to give more for less; It can be a time-consuming process
3 of 5
Functions money must perform
Unit of account; means of exchange; store of value; means of borrowing and repaying debts
4 of 5
What does legal tender mean?
The coins/ notes that must be accepted if offered in payment of a debt.
5 of 5

Other cards in this set

Card 2

Front

Outline 3 key features of money ( try to outline all 8 features)

Back

Money needs to be: acceptable, to be widely accepted; durable, to be strong enough to be reused in many transactions; recognisable, needs to be easily identified as genuine money;

Card 3

Front

Explain the limitations of bartering

Back

Preview of the front of card 3

Card 4

Front

Functions money must perform

Back

Preview of the front of card 4

Card 5

Front

What does legal tender mean?

Back

Preview of the front of card 5

Comments

No comments have yet been made

Similar Accounting resources:

See all Accounting resources »See all Topic 1 resources »