Money and Banking Quiz

The primary functions of money are a mode of exchange and a common measure of value or a common unit of value.

The disadvantages of barter exchange include a lack of a standardised means of measuring value, a lack of desire for duplication, a scarcity of common value measures, inadequate store of value, and deferred payment standards are lacking.

The oldest form of commerce is barter exchange.

<p>The secondary functions of money are value storage, value transfer, and deferred payment standard.</p> Signup and view all the answers

<p>There can be no exchange of commodities and thus no role for money in an economy consisting of only one person because money is a means of exchange and requires at least two parties for exchange.</p> Signup and view all the answers