What are the desirable characteristics of the good used as money? Select all that apply.Multiple answers:Multiple answers are accepted for this questionSelect one or more answers and submit. For keyboard navigation...SHOW MOREaMoney is a store of value.bMoney is a medium of exchange.cMoney holds the same value through time.dMoney is a unit of account.
Question
What are the desirable characteristics of the good used as money? Select all that apply.Multiple answers:Multiple answers are accepted for this questionSelect one or more answers and submit. For keyboard navigation...SHOW MOREaMoney is a store of value.bMoney is a medium of exchange.cMoney holds the same value through time.dMoney is a unit of account.
Solution 1
The desirable characteristics of a good used as money include:
a) Money is a store of value: This means that money can be saved and used in the future without losing its value. It allows individuals to defer consumption till the future.
b) Money is a medium of exchange: This means that money is widely accepted for the purchase of goods and services. It eliminates the need for a coincidence of wants that is required in a barter system.
c) Money holds the same value through time: This means that the value of money remains stable over time. It does not depreciate with time or due to wear and tear.
d) Money is a unit of account: This means that money is used to measure the value of goods and services. It provides a standard measure of value and allows for the comparison of the value of different goods and services.
So, all the options a, b, c, and d are correct.
Solution 2
The desirable characteristics of a good used as money include:
a) Money is a store of value: This means that money can be saved and used in the future without losing its value. It allows individuals to defer consumption till the future.
b) Money
Solution 3
The desirable characteristics of the good used as money are:
a) Money is a store of value: This means that money can be saved and used for future purchases. It retains its value over time.
b) Money is a medium of exchange: This is one of the most important characteristics of money. It means that money is widely accepted as a form of payment for goods and services.
d) Money is a unit of account: This means that money is used to measure the value of goods and services. It provides a standardised measure of value, which simplifies the process of comparing prices.
c) Money holds the same value through time: This is not always true. The value of money can change due to factors such as inflation or deflation. Therefore, while it is desirable for money to hold the same value over time, it is not always the case.
Similar Questions
What are the desirable characteristics of the good used as money? Select all that apply.
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