Additional Questions: Key Characteristics of Money | Introduction to Financial Markets for Class 9 PDF Download

Q.1. What is the criterion for anything to serve as money? 

The most important to serving anything to serve as money is that it must be readily acceptable.

Q.2. Explain how money serves as a standard of value or a unit of Account. 

Earlier people used to exchange one commodity with another commodity and after that symbolic money was used as medium of exchange which had agreed value between the traders or it was limited to particular locality. But with the invention of money, money is considered as a standard value of any tangible item .If the computer cost is set at Rs 35000, it is the common standard value of the computer for anyone who wants to buy the computer.

Q.3. What do you mean by Store value of money? 

People used commodity money in earlier times which were mostly perishable in nature. Now, with the invention of money, it can be stored for future and so purchasing can be postponed. Moreover, if the money is stored and invested by postponing purchase, it will grow which is unlike commodity money.

Q.4. State some general characteristics for acceptability as money. 

(i) It must be durable.
(ii) It should be relatively scarce.
(iii) It has to be easy to transport
(iv) It must be divisible into usable quantities or fractions.

Q.5. What do you mean by Trading?

Trading means buying and selling of goods and services.