A1 Functions Of Money

Question 1

Unit of account

Answer 1

Something that can be used to value goods and services and record debts

Question 2

Means of exchange

Answer 2

Allows businesses to trade. Consumers and businesses can buy and sell goods and services using money
What is Unit of Account?
Allows you to place a monetary value on goods and services. The price of the goods and services show the unit of account

Question 3

Store value

Answer 3

Allows you to keep money for the future as it will keep its value

Question 4

Legal tender

Answer 4

Money is a legally recognized form of payment. Money is widely recognized, and it is used for all types of transactions