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6. The main advantage of paper currency over commodity money is that it is lighter and easier to transport. This makes paper currency more convenient for everyday transactions compared to carrying around heavy commodity money like gold or silver.
7. Cheques are a form of fiat money. Fiat money is currency that has no intrinsic value and is declared legal tender by a government, such as paper money or coins. Cheques represent a promise of payment from a bank and are a widely accepted form of payment in modern economies.
8. E-money (electronic money) refers to money transferred using credit cards or other electronic means. It is a digital form of currency that can be used for online transactions and payments without the need for physical cash.
9. In Ethiopia, the Birr is the current national currency. It is the legal tender used for daily transactions and represents the official monetary unit of the country.
10. Money as a unit of account is used to measure the value of goods and services. It serves as a common benchmark for pricing and comparing different products, making trade and economic transactions more efficient.
11. The medium of exchange function of money allows transactions to take place without bartering. Money acts as a widely accepted intermediary that simplifies trade by eliminating the need for direct exchange of goods or services, enabling smoother and more complex economic activities.
