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 Form 4 CRE lessons on Christian approach to wealth, poverty and money

Meaning of money and its properties or characteristics

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Answer Text:
-Money can be defined as the medium of exchange that functions as a legal tender and the official currency in form of coins and bank notes issued by a government or another authority.
-Money is a convenient medium of exchange because it can be related to
all forms of material goods in terms of value.
-However a good monetary medium must fulfill some of the following properties:
-It must be easy to carry about.
-Its value must be maintained through proper control of its circulation.
-It must be generally acceptable. This means that people must have confidence in its purchasing power.
-It must be durable. That means it should not be subject to deterioration during the time of storage.
-It must be easy to divide into small units.
-Money is therefore a measure of wealth. Its actual value depends on what it can purchase.
-Different regions in the world use different currencies. For example in Kenya we use shilling (Ksh), South Africa, the Rand (R), United States, the Dollar (US $) etc.