Th1.1: Functions of Money Flashcards
1
Q
First key function of money:
A
a medium of exchange - can be used to buy and sell goods and services and is acceptable everywhere
2
Q
Second key function of money:
A
a measure of value - can compare the value of two goods or labour
3
Q
Third key function of money:
A
a store of value - keep its value and can be stored for a long time
4
Q
Fourth key function of money:
A
a method for deferred payment - can allow for debts to be created
5
Q
What are the four key functions of money?
A
a medium of exchange
a measure of value
a store of value
a method for deferred payment
