functions of money Flashcards
1
Q
what are the four functions of money?
A
unit of account
means of exchange
store of value
legal tender
2
Q
unit of account
A
-allows us to place monetary value on goods and services
-prices of goods and services show the unit of account
3
Q
means of exchange
A
-allows us to trade
-businesses and customers can buy and sell goods.
4
Q
store of value
A
-allows us to use in the future as it keeps value
-money saved up that can be used to buys goods and services
5
Q
legal tender
A
-legally recognised form of payment
-money is widely recognised and used for all sorts of transactions and receiving wages
