. Consider the following items. For each item, determine whether they fulfill all three functions of money; medium of exchange, store of value and unit of account.

Examples

Medium of

Exchange

Unit of

account

Store of

Value

Cigarettes

Corn

Gold

Antique vase

U.S. Government Bond

Mexican peso

US dollar

Exercise II. From the list below, select good examples and bad examples for each property of money.

Sea shells, Tobacco, Rice, Diamonds, Salt bricks, Seafood, Paper money, Iron coins, Gold coins, Cattle, Strawberries.

Properties of Money

Rationale

Good Examples

Bad Examples

1. Durable

Money should not wear out quickly

2. Portable

Money should be easy to carry, even relatively large sums

3. Divisible

Should be easily divisible into smaller units

4. Recognizable

It could be easily be recognized as money

File Home Insert Design Layout References Mailings Review View Help Table Design Layout 5 - - A v A ,DFind .. I151 [B CalibrIKBodyJ ~ 1i ' A A A3" 46'? AaBchDc AaBchDt AaBbC AaBbCC]