Functions of Currency Flashcards by Michael Perez | Brainscape

Q

What are 3 functions of money?

A

Medium of exchange
Store of value.
Unit of account.

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Q

What is medium of exchange?

A

Facilitates transactions for goods or services.

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Q

What is store of value?

A

An assets ability to retain purchasing power.

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Q

What is unit of account?

A

Determines the value of a good based on price.

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