MGMT 100 Study Guide - Final Guide: Debit Card, Stock Exchange, Mutual Fund
Document Summary
Lo1 explain what money is and what makes it useful. Money is anything that people generally accept as payment for goods and services. Barter is the direct trading of goods or services for other goods or services. Coins and paper bills prove to be good for trade. Five standards for a useful form of money are: profitability. Coins are easy to take the market: divisibility. Different-sized coins and bills can represent different values: stability. When everybody agrees on the value of coins, the value money is relatively stable. Due to the stability, the us dollar as the measure of value. If the value rapidly drops, the currency preference changes: durability. Coins last for thousands of years: uniqueness. It"s hard to counterfeit, or copy, elaborately designed and minted coins. Security features (on notes) include raised ink, transparent text, metallic portraits, transparent window, small numbers, hidden number, and borders. Electronic cash (e-cash) is used in online payments (paypal etc.
