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| Question | Answer |
| Barter trade | The exchange of goods and services for other goods and services. |
| Money | Anything accepted as a medium of exchange. |
| Characteristics of money | 1. Acceptability 2.Divisibility 3.Portability 4.Durability 5.Stability in value 6. Homogenity 7. Cognisability 8. Malleability |
| Demand for money | The tendency or desire by an individual or general public to hold onto money instead of spending it. |
| Transaction motive | A situation where one holds onto money with a motive of meeting daily expenses such as buying food, paying for transport cost and entertainment. |
| Precautionary motive | Where people hold onto money to meet expenses that may occur unexpectedley such as sickness, accidents or loss of property. |
| Speculative motive | Money held to be used in the future especially when people anticipate that the prices of goods and services will be lower than they are presently. |
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