economics
- This is a preview of the essay.
To view the full text you must login!
and services.
Standard of value- A measure of the relative value of various goods or services.
Store of value- A characteristic of a medium of exchange that allows it, thus value or wealth to be stored
Commodity money- An item that has a value of its own ( as a commodity) and that also is used as money.
Representative money- An item that has value because it can be exchanged for something else of value.
Specie- Gold or silver.
Fiat money- Money that is not backed by gold, silver, or other items of value but that has worth because a government requires that it be accepted as a medium of exchange.
Currency- Coins and other paper bills.
Near money- An asset that can easily be converted into cash when needed.
2. The three basic functions of money are Medium of Exchange, Standard of Value, and Store of Value...