What are the three main purposes of money? In your answer, be sure to explain why each purpose helps us to eliminate the need for bartering.
Money is a medium of exchange, a unit of account, and a store of value. As a medium of exchange, it lets people buy and sell without finding someone who wants exactly what they offer, as barter requires. As a unit of account, it gives goods and services common prices so people can compare values easily. As a store of value, it lets people save purchasing power for the future instead of having to trade goods right away.
Which of these factors are included in your response? Check all that apply.
What does it mean to say that money is divisible?
In the United States today, what gives money its value?
What does the statement "This note is legal tender for all debts, public and private” guarantee?
Which phrase best defines the liquidity of money?
Why do economists study the money supply?Be sure to mention liquidity in your response.
Economists study the money supply to understand how accessible money is in the economy and to assess its liquidity.
How does a debit card differ from both barter and currency?
Which of these factors are included in your response? Check all that apply.
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