personal finance - topic A Flashcards
A - understanding the importance of managing personal finance
1
Q
unit of account
(functions of money)
A
a numerical unit of measurement used to value goods, services and financial transactions to cause a consistent way of pricing
2
Q
means of exchange
(functions of money)
A
money is used to sell, buy or trade goods and services - money makes this simple.
3
Q
store of value
(functions of money)
A
money has a value and can be stored in a bank and used in the future to buy goods and services
4
Q
legal tender
(functions of money)
A
money that must be accepted when it is offered in a payment of a debt, these are the currency of that country.
5
Q
A
