KAMPALA INTERNATIONAL UNIVERSITY, KAMPALA

UGANDA.

COURSE: HEC

COURSE UNIT: MACRO ECONOMICS.

PROGRAM CODE: HEC 1121.

YEAR: 1

SEMESTER: 1

LECTURER: MS. NAKIBUUKA SHARIFA

GROUP: B.

NAMES REG. NUMBER.

UDEH TOCHUKWU FREDRICK. 2023-01-13657
NABUKWASI SANDRA. 2033-01-14535
KUR DAVID. 2023-01-14094
TAYZIR YOUSUF MOHAMMED 2023-01-13313
KHADIJA HASSA 2023-01-14094
QUESTIONS:
1. Define Money.
2. Functions Of Money.
3. Characteristics Of Money.

DEFINITION OF MONEY

Money can be defined as anything that is generally accepted as a medium of

exchange, store of value and settlement of debts.
OR
Money can be defined as any item or medium of exchange that is
accepted by people for the payment of goods and services.

FUNCTIONS OF MONEY

1.Medium of exchange: Money is generally accepted by the society as a

medium of exchange for goods and services.
2. Standard for future payment: Money also provides a standard of payment
to be made in future.
3.Measure of value: Money acts as a common measure of value for goods and
services.
4. A Store of value: can be defined as any commodity or asset that would
normally retain purchasing power into the future and is the function of the asset
that can be saved, retrieved and exchanged at a later time, and be predictably
useful when retrieved. 

CHARACTERISTICS OF MONEY

1. General Acceptability:
i. This is a major quality of money to be used.
ii. It should be generally acceptable by all the people in the society as
a medium of exchange and settlement of debts.

2. Portability:
i. Money should not be heavy.
ii. Money should be easy and light to carry from place to
another.
3. Scarcity:
i. Money should be relatively scarce difficult to get in order to
encourage hard work.

4. Durability:
i. Money should be durable.
ii. Money should be able to last for a considerable length of
time.
iii. Even coins used as money should avoid wear and tear.

5. Homogeneity:
 i. Money should be uniform and similar
ii. The currency of country should be similar in size.

6. Stability in value:
i. Money should be stable in value and not fluctuating so that
people can use it consistently.

7. Difficult to counterfeit:

i. Money should be difficult to forge or make fake copy.

ii. The material used to make money must be difficult to
counterfeit.