What money is:
Functions
of money:
*
Medium of exchange
- no need to barter
- no need for “double coincidence of wants
*
Unit of Accounting
*
Store of Value
Types
of money:
*
commodity
*
representative
*
fiat
Things
money has to be:
*
durable
*
portable
*
divisible
*
stable in value
*
scarce
*
accepted