Good morning class. Today were gonna talk about the types of money, and the types of exchange process
money has 3 main functions in our economy. Medium of exchange means what people are willing to exchange for goods and services standards of value allows people to compare the values of goods and services using p;rice. store of value allows people to save for future consumptions.
good question. commodity money is an item that value themselves other than being used as a monetery unit. representative money have value in themselves but can exchange for something of value. flat money has value simply because of the goverment has decreed it to be an acceptable.
Does money have its own characteristics?
bartering, using, currency, debit, and credit gave a positive and negative aspect in exchange
negativebarter= limited by what it is avaliable and by what it deserves currency- limited amountcredit- can overextended repayment problemsdebit- limited to what you have in the bank
positivebarter- no cash neededcurrency- most widely acceptedcredit-can purchase without having enough cash debit- same as cash
by abandoning gold standards, money backed by the strength of the goverment or fiat money