Barter System & Functions of Money

Easily transferred from one person to another, to make the exchange of money for goods/services easier

• Durability

• Divisibility

• Portability

• Scarcity

Money has what if it doesn't deteriorate when it is being handled?

• Scarcity

• Divisibility

• Durability

• Portability

Money has what if it can be broken down into smaller units so it can be used as needed?

• Divisibility

• Portability

• Scarcity

• Durability

What is money if it is available but only in a limited supply?

• Portable

• Durable

• Divisible

• Scarce

Money or other items generally accepted as payment for goods and services.

• Measure of value

• Medium of exchange

• Scarcity

• Store of Value

This can be used in place of money.

• Fiat money

• Cash

• National currency

• Trading or bartering

What are the functions of money?

• Unit of account

• Store of Value

• Medium of Exchange

• Store of Bank Notes

• Measure of Value

The function of money which allows people to preserve value for future use.

• Store of value

• Divisibility

• Portability

• Measure of value

Which of the following statements explain why a barter system restricts exchange?

• There must be a coincidence of wants

• It is difficult to divide certain commodities

• The commodities used are not homogeneous

• A rate of exchange must be determined

Which of the function is NOT a function of money?

• Indivisibility

• Measure of value

• Store of value

• Medium of exchange