Functions Of Money

Question 1

Unit Of Account

Answer 1

Allows us to place a monetary value on goods and services; the prices of goods and services show the unit of account

Question 2

Means Of Exchange

Answer 2

Allows us to trade; businesses and customers can buy and sell goods and services using money

Question 3

Store Of Value

Answer 3

Allows us to use it in the future as it keeps its value e.g. money saved in a bank account or piggy bank

Question 4

Legal Tender

Answer 4

It is a legally recognised form of payment, it is the national currency of a country, widely recognised and used for all sorts of transactions