Author Topic: help regarding a question - economics  (Read 1309 times)

Offline Priya

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help regarding a question - economics
« on: June 06, 2009, 06:43:00 pm »
Hey :)

Explain the characteristics required by money if it is to carry out its functions effectively.

Can you help me explain the link between the functions of money and the characteristics, please?

Thanks

Offline twilight

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Re: help regarding a question - economics
« Reply #1 on: June 09, 2009, 12:39:53 am »
the functions of money r necessary to make the characteristics function effectively
for eg. for money to b used as a medium of exchange it needs to be:
 divisible
 acceptable
 limited in supply, scarce (to hav a value),
 portable(to be easily carried around),convinient too

for it to act as a store of value it needs to be durable, stable in value, etc
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