Functions Of Money Flashcards
1
Q
Name 2 functions of money
A
Means of exchange
Unit of account
Store of value
Legal tender
2
Q
What is unit of account?
A
Allows the value of items to be compared
3
Q
What is means of exchange?
A
Allows goods and services to be traded
4
Q
What is store of value?
A
Value can be used now or in the future
5
Q
What is legal tender?
A
Legally sanctioned by the government to be seen as widely accepted currency in a specific country
