The Nature and Management Of Money

Question 1

What is Money

Answer 1

Money is an indispensable commodity or resource. Money is a medium of exchange that in generally accepted by society.

Question 2

Functions of money

Answer 2

1. Measure Of Value
2. Measure of value
3. Store of value or wealth
4. Standard of deferred payment
5. Determinant of social status

Question 3

Money isa medium of exchange

Answer 3

Money is a means of exchange that allows you to carry out transactions making payments in exchange of goods and services.

Question 4

Money is a Measure Of Value

Answer 4

A measure of value in money refers to the way money serves as a standard for comparing the worth of goods and services

Question 5

Money as a store of value or wealth

Answer 5

A store of value or store of wealth is one of the key functions of money and other assets. It refers to the ability of an item or asset to retain its value over time without depreciating, allowing individuals to save or accumulate wealth for future use.

Question 6

Money is a standard of Deffered payment

Answer 6

This function allows people and businesses to buy goods or services now and pay later, using money as the agreed-upon unit for future payments.

Question 7

Money as a determinant of social status

Answer 7

Money as a determinant of social status highlights how wealth influences an individual’s position or rank within society.

Question 8

Means by which money is earned

Answer 8

1.Unearned income
2. Earned income
3.Non-income Earning

Question 9

Earned income

Answer 9

Money received in exchange for labor, services, or active participation in a business.

Question 10

Unearned Income

Answer 10

Money received without actively working for it, often from investments or passive sources.

Question 11

Non-income earning

Answer 11

Situations where an individual isn’t earning money through work or investments.