Money — Flashcards

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Robertson defined money as 'anything which is widely accepted in payment for goods or in discharge of other kinds of business obligations'. This means that for something to be money, it must be genera…

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Walker meant that the identity of money is based on its functions rather than its physical form. If something performs the key roles of money—like being used to buy goods, measure value, or store weal…

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Crowther defined money as 'anything that is generally acceptable as a medium of exchange and which at the same time acts as a measure and store of value'. This highlights three main roles: facilitatin…

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The barter system is the direct exchange of goods for goods without using money. For example, a farmer giving wheat to a potter in return for pots. This system was used before money was introduced and…

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Double coincidence of wants means both parties must want what the other has to offer. For example, if a goat owner wants rice, he must find someone who has rice and wants a goat. This makes trade diff…

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In the barter system, goods like grain, milk, or animals are used as value, but many of these are perishable and cannot be stored for long. Even non-perishable goods like cattle require care and space…

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Some goods like cows or houses cannot be divided into smaller parts for exchange. For example, if a goat is worth half a cow, you can't easily give half a cow. This makes fair exchange difficult, unli…

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In the barter system, there was no standard unit to measure the value of goods. For example, deciding how much rice equals one goat was difficult and varied between people. Money solves this by provid…