About CE Economics

1.C. medium of exchange exists in a barter system
e.g.Exchange 20 potatoes for 15 apples
Exchange 15 apples for 20 potatoes

-Potatoes and apples are media of exchange
The act of buying and selling stillt be accompanied by the act of selling
So,lack of medium of exchange is not the reason.

D. store of value
-Potatoes, apples and the like are not durable ,not scarce enough
-Their value is low and last only for a short period of time
-Then their purchasing power(value) may only for present use
-but not for future use

-So, in a barter system,we have to exchange the good we want
with our good which cannot store purchasing power for future use
Lack of store of value is the reason why the act of buying and selling must be accompanied by the act of selling.

2
Ans.2)store of value
Political instability may leads to loss of value of legal tenders

Political instability may adversely affect econmic activities in the area
Supply of some goods may even cut off
and cause too much money chasing too few goods
Purchasing power(value) of money may fall

Function store of value will be adversely affected

3.
B. it possesses no intrinsic value
-NOT a BETTER form of money
C. portable？paper is lighter,of course
D.durable？gold and silver is more durable
what are C and D？