MONEY IS SOMETHING THAT IS GENERALLY ACCEPTABLE AS A MEDIUM OF EXCHANGE CASH CIRCULATING IN THE...
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• MONEY IS SOMETHING THAT IS GENERALLY ACCEPTABLE AS A MEDIUM OF EXCHANGE • CASH CIRCULATING IN THE ECONOMY + DEPOSITS WITH FINANCIAL INSTITUTIONS MAKE UP THE MONEY SUPPLY Money makes the world go around
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Transcript of MONEY IS SOMETHING THAT IS GENERALLY ACCEPTABLE AS A MEDIUM OF EXCHANGE CASH CIRCULATING IN THE...
• MONEY IS SOMETHING THAT IS GENERALLY ACCEPTABLE AS A MEDIUM OF EXCHANGE
• CASH CIRCULATING IN THE ECONOMY + DEPOSITS WITH FINANCIAL INSTITUTIONS MAKE UP THE MONEY SUPPLY
Money makes the world go around
Functions of Money
Medium of exchange
Measure of value
Store of value
Means of deferred payment
Characteristics of money
Acceptable
Durable
Portable
Divisible
Scarce
Why is money important for the economy to operate?
Research the history of money and the barter system
- What is barter?- What were the early forms of money?- When were coins first used?- When was paper money first used?- What are the advantages and disadvantages
of paper money?- Why were polymer notes developed?
Define the following terms
CashFinancial assetsLiquid assetsLiquidityMoney supplyPhysical assetsVelocity of circulationBank deposits Why couldn’t banks repay bank deposits if
everyone withdrew their money on the same day?
