Function of money Flashcards
1
Q
What is barter
A
The exchange of goods and services for other goods and services without using money
2
Q
What is money
A
A medium that can be exchanged for goods and services and is used as a measure of their values on the market
3
Q
3 functions of money
A
A medium of exchange
A store of value- retains value
Unit of account- comparable
4
Q
what is commodity money
A
Precious metals
5
Q
What is fiat money
A
Legal tender- notes and coins
