1 / 5

Money

Lecture 6.6. Money. Money. Money- anything people commonly accept in exchange for goods and services. Functions of Money. Medium of exchange - must be accepted in exchange for goods and services Measure of value - compare the value or worth of different items through prices.

trevor
Télécharger la présentation

Money

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Lecture 6.6 Money

  2. Money Money- anything people commonly accept in exchange for goods and services

  3. Functions of Money • Medium of exchange- must be accepted in exchange for goods and services • Measure of value - compare the value or worth of different items through prices. • Store of value - non perishable; can be saved and keep its value over time and even accumulate wealth

  4. Characteristics of Money • Stable – money should be scarce to maintain it’s value over time • Portable: be able to carry it around • Divisible: easily separated into parts • Durable: it must last

  5. Sources of Money’s Value • Commodity - item has value of its own. (ex. Gold, diamonds, salt) 2. Representative - represents value held elsewhere (ex. checks) 3. Fiat"let it be done". - money has value simply because the government says it does. (ex. Our currency)

More Related