B. Characteristics and Functions of Money Main Idea: To serve its purpose properly, money must have four important characteristics and three specific functions. 1. What are important characteristics of money? 2. What roles does money serve in an economy? 3. Does modern money have the important characteristics of money? Why or why not? 4. What is the difference between our M1 supply and our M2 supply? Summary and Reflection Directions: Summarize the main ideas of this lesson by answering the questions below. How has money changed over time? How has it remained the same