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MoneyWorksheet 1 - Money - who needs it?The purpose of this worksheet is to look at the functions and attributes of money. What is it that makes something a reliable form of money? 1. What are the main functions of money?
2. In the table below are the various attributes of money - that is the qualities money needs to fulfil its functions well. Across the top of the table are various possible types of money. For each type of money, give a score between 1 and 10 to say how well you think it meets each attribute.
Now add up the totals for each type of money and list them in order below, starting with the best form of money (the one with the highest score):
3. Write a short paragraph justifying why the type of money at the top of your 'money chart' is likely to fulfil the functions of money best. 4. Rank the following types of money in order of liquidity, starting with the one that is most liquid. Rank them from the point of view of an individual. Gilt-edged securities, notes and coins, Treasury Bills, a bank deposit account (1 week's notice), a building society account (3 month's notice), 1 year building society bond 
5. What are the advantages and disadvantages of holding your money in a liquid form? Advantages Disadvantages |
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