IGCSE/GCSE/O & A Level/IB/University Student Forum

Qualification => Subject Doubts => GCE AS & A2 Level => Commerce => Topic started by: Priya on June 06, 2009, 06:43:00 pm

Title: help regarding a question - economics
Post by: Priya 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

Title: Re: help regarding a question - economics
Post by: twilight 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