The functions of money are that it is a medium of exchange, a unit of account, and a store of value.[24] To fulfill these various functions, money must be:[25]
- Fungible: its individual units must be capable of mutual substitution (i.e., interchangeability).
- Durable: able to withstand repeated use.
- Divisible: divisible to small units.
- Portable: easily carried and transported.
- Acceptable: Most people must accept the money as payment
- Scarce: its supply in circulation must be limited.[25]
No comments:
Post a Comment