Functions of Money Flashcards
1
Q
What are the main functions of money?
A
- Unit of Account
- Means of Exchange
- Store of Value
- Legal Tender
2
Q
Unit of Account
A
Money can be used to place a value on goods and services.
In the UK, the unit of account is shown in pounds and pence.
3
Q
Means of Exchange
A
Money is used to sell, buy, or trade goods and services
4
Q
Store of Value
A
Money has a value. It can be stored, for example in a bank, and used in the future to buy goods and services
5
Q
Legal Tender
A
Money is the legal means you use to pay for goods and services. It is the national currency of a country
