functions of money Flashcards
1
Q
what is unit of account
A
a measurement for the value that is divisible, fungible, and countable.
2
Q
what is means of exchange
A
A medium of exchange is an intermediary instrument or system used to facilitate the sale, purchase, or trade of goods between parties.
3
Q
what is store of value
A
A store of value is essentially an asset, commodity, or currency that can be saved, retrieved, and exchanged in the future without deteriorating in value.
4
Q
what is a legal tender
A
Legal tender is anything recognized by law as a means to settle a public or private debt or meet a financial obligation, including tax payments, contracts, and legal fines or damages.
