The features + functions of money

chapter 1 finance. Some features that aren't as straight forward have a separate card

The 8 features of money

Acceptable, recognisable, stable, divisible, durable, portable, scarce but sufficient, homogeneous

STABLE (feature)

Coins + banknotes should maintain the same value so people can know it will have the same value later.

SCARCE BUT SUFFICIENT (feature)

Can’t be too much in circulation as as the value will fall

HOMOGENOUS (feature)

Need to look and feel the same + any changes made should be informed

Functions of money

A unit of account, a means of exchange, a means of borrowing, and a store of value

MEANS OF EXCHANGE additional points (function)

. Coins > £1 are only legal tender for debts up to £10

. Legal tender = recognised +accepted by government

Security features of money

Ultraviolet features, metallic thread, micro lettering, watermarks, holograms