Match each characteristic or function of money on the left with its correct economic description on the right.
- DivisibilityAbility of money to be divided into smaller denominations for purchasing low-value goods.
- Medium of exchangePrimary function of money in facilitating trade by eliminating the need for a double coincidence of wants.
- PortabilityPhysical quality that makes money easy to carry around for daily transactions.
- Store of valueSecondary function of money that enables individuals to save purchasing power over time.
Answer
Divisibility matches the ability to be divided into smaller denominations; Medium of exchange matches facilitating trade by eliminating double coincidence of wants; Portability matches the physical quality of being easy to carry around; Store of value matches enabling individuals to save purchasing power over time.
Each feature of money directly corresponds to its core economic definition: divisibility allows small payments and change; medium of exchange enables smooth commercial transactions; portability ensures money can be carried easily; store of value preserves wealth over time.
Step-by-Step Solution
Key Concept
Functions and Characteristics of Money