Bartering

Barter

The exchange of goods and services without the use of money.

Double coincidence

The requirement that both parties in a barter must want what the other has to offer.

Store of wealth

The problem of storing perishable goods and the reduction in quality over time in bartering.

Deferred payment

The situation where goods and services are exchanged but payment is made in the future, leading to potential disputes.

Common measure value

The difficulty in finding a common value for goods and services in a barter system.

Money

A legal tender used to pay debts and make payments, serving as a medium of exchange.

Commodity money

Early forms of money that included valuable natural resources like wheat, salt, and metal.

Metallic money

The use of metals like silver and gold as a more standardized form of money compared to commodity money.

Paper money

A significant evolution in money that replaced metallic coins for safety and convenience.

Credit money

A monetary sum added to an account, allowing for savings and future withdrawals.

Plastic money

Debit and credit cards that reduce the need to carry physical cash.

Divisible

The feature of money that allows it to be broken down into smaller units for various transactions.

Portable

The ease of carrying money from one location to another.

Acceptable

The requirement that money must be agreed upon by everyone as a medium of exchange.

Scarce

The necessity for money to remain limited in supply to maintain its value.

Durable

The characteristic of money that ensures it lasts over time.

Stable

The property of money that allows its value to remain consistent over a period.

Homogeneous

The quality of money being identical in feel and appearance.

Medium of exchange

The primary function of money in facilitating the exchange of goods and services.

Standard of deferred payment

The ability of money to be used for future payments without losing value quickly.

Store of wealth

The function of money that allows it to be saved for long periods.

Unit of account

The role of money in providing a measure of value for goods and services.