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Macroeconomics

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What are Important Characteristics of Money?

MACRO-LT1S1L

Suppose you are on a deserted island with your classmates and are considering what objects to use as money. The following paragraph describes a discussion you had amongst your classmates about this issue. Fill in the missing words.

Your classmate Fred suggests that sand would be a good candidate, however; after some thought, you object because sand is not

. Sandra suggests that trade could be facilitated by using berries, but although berries are relatively scarce on the island, they are not

because they can easily perish. Anthony, suggests using small boulders that can be found throughout the island but the others strongly object because these objects are not

. You decide to suggest seashells as they are relatively scarce, durable, and portable, however; everyone objects and claims that they would refuse to use them as currency because they should be used in making clothes and jewelry. Seashells would not be considered money as they would not be considered

.