Characteristic of Money Your own definition (refer Ways of Financing

Write the letter before each to notes, PDF text) International Business
picture

Some objects used as money 1. Bank Loans and

in the past could not be Financing: Businesses
moved easily from one place can secure loans or
to another. As people became financing from
more mobile, they demanded international banks to
a money form that was fund their operations,
portable. expansion, or specific
projects. These loans
may be in the form of
term loans, revolving
credit, or other
financial instruments
C. provided by financial
institutions.
For something to be used as 2. Equity Financing:
money, it also must be scarce. Companies can raise
If the item being used as funds by attracting
money is very plentiful, it foreign investors or
will not maintain its value. As partners who
items used for money become contribute capital in
common, they lose their exchange for
buying power. ownership stakes in
E. the business. This can
be done through
methods such as
selling shares,
forming joint
ventures, or attracting
venture capital.

For money to be useful, it 3. Trade Credit and

should also be divisible. What Export Financing: In
would happen if someone international trade,
wanted to buy an item using a businesses often use
cow as payment? The item to trade credit, which
be purchased would have to allows them to buy
be of equal value to the cow goods or services with
since livestock is not easy to delayed payment
B. divide into smaller monetary terms. Export
units. Most nations have financing options,
 different units of money such as export credits
and guarantees from
government agencies
or financial
institutions, can also
provide capital for
international
expansion.
The most important Are they all (ways of
characteristic of money is that financing) in MONEY
it is acceptable. In other FORM? If not, what are they
words, people must be willing in form? How to they
to take an item in exchange function?
for what they are selling.

A.

A problem with some items

used as money in the past,
such as farm products, was
that they spoiled or got
damaged easily. Items used as
money should be durable.
Gold and silver, commonly
used as money because of
D. durability, were first made
into coins in the seventh
century B.C. in Greece.