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.
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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;
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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
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Functions money must perform
Unit of account; means of exchange; store of value; means of borrowing and repaying debts
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What does legal tender mean?
The coins/ notes that must be accepted if offered in payment of a debt.
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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;
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