Functions Of Money (NEED) Flashcards
1
Q
What are the functions of money?
A
Medium of exchange
Unit of account
Store of value
Standard of deferred payment
2
Q
What is medium exchange?
A
Money is used as a form of payment to trade goods/services
3
Q
What is unit of account?
A
Money provides a common standard for measuring the value of goods/services
4
Q
What is store of value?
A
Money maintains its value over time allowing it to be kept for later use
5
Q
What is standard of deferred payment?
A
Money is used to settle debts at a future date or pay for goods/services that you have now at a later date
6
Q
A
