Functions Of UK Financial Services Flashcards
1
Q
What is a Medium of Exchange?
A
To be acceptable money must have certain properties:
Divisible into small amounts;
Generally acceptable to all parties within a transaction;
Portable; and
Sufficient in quantity
2
Q
What is a unit of account?
A
Financial measure to represent the value of any economic item.
3
Q
What is store of value?
A
When a service or goods are purchased now but can be used at a later date. Money must retain its purchasing power in order for this to work, inflation can effect this.
