Wednesday, November 9, 2016

Understanding Money

The characteristics of money are:

Durability, Portability, Divisibility, Uniformity, Acceptable.

Money is a store of value. You must store money in a way that it doesn't spoil or rot over time. Money is an efficient way to store value but it is not a perfect way to store value. Inflation slowly erodes purchasing power.

Money is a unit of account.  It is a measure of economic transaction.

Money is a medium of exchange. It is widely accepted as a method of payment. The cashier with accept my method of payment.

Money is the greatest invention of all time.

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