FM - 4 : MONETARY POLICY AND CENTRAL BANKING

This is one of the characteristics of money in which the commodity chosen as money would have to withstand normal wear and tear.

Another characteristic of money which means that the commodity used as money could be melted down and shaped into different forms as well as imprinted with any desired design.

A characteristic of money which means that the commodity should be easily carried or transported from place to place.

This is the first and foremost characteristic of money which means that the object or commodity to be used as money should be useful.

What are the functions of money?

This is the total amount of money that balances everyone wishes to hold for all purchases.

He advocates a system of 100% reserve banking.

The study which seeks to discover and explain how the use of money in its different functions affect the production, distribution and consumption of goods.

The exchange of goods without the use of money.

A characteristic of money which is also known as homegeneity.