The History and Nature of Money

Easily transported from one place to another.

• Portability

• Immobility

• Inaccessibility

• Stability

Anything that serves to determine value during the exchange of goods and services.

• Medium of exchange

• Store of value

• Unit of account

• Standard of deferred payment

Can be broken down into smaller denominations or units of value.

• Divisibility

• Indivisibility

• Uniformity

• Complexity

Keeps its value if it is stored rather than used.

• Store of value

• Medium of exchange

• Unit of account

• Liquid asset

Any two units of a currency can buy the same item or amount of something.

• Uniformity

• Diversity

• Variability

• Inconsistency

Can withstand wear and tear.

• Reliability

• Durability

• Fragility

• Instability

Its value comes from what it is made of, which has intrinsic value, like gold or cattle.

• Fiat money

• Commodity money

• Cryptocurrency

• Barter system

A way to compare the values of goods and services.

• Unit of account

• Medium of exchange

• Store of value

• Barter system

An object that has value because it can be exchanged for something else of value, like when the US dollar was backed by gold.

• Fiat money

• Commodity money

• Representative money

• Barter system

Can be exchanged for goods and services with anyone in the economy.

• Acceptability

• Liquidity

• Scarcity

• Utility