Wednesday, May 16, 2012

Money Functions and Money Atributes


A. Money Functions
1. Medium/ Means of Exchange
2. Unit of Account
3. Standard/Measures of Value
4. Store of value
Liquidity Preference Theory oleh John Maynard Keynes, there are 3 reasons why peoples or company keeping money:
a. Transaction Motive
b. Precautionary Motive
c. Speculative Motive
5. Payment of Debt/Standard of Diferred Payment

B. Money Atributes
1. Legal Atributes of Money     
2. Phisical Atributes of Money
a. convenience
b. durable
c. Not ease to manipulate.
d. Ease of recognition
3. Economic Attributes of Money
a. Acceptability
b. Uniformity of Value
c. Stability in Value
d. Suitable denomination
                      e. Composition of the fractions that suitable with the growth  of  price rates




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