Functions of money
- Created by: laurajohnson99
- Created on: 30-05-14 19:59
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- Functions of money
- Medium of exchange
- Money is generally accepted as a means of payment for most goods
- Unit of account (measure of value)
- The price of an item can be measured in terms of how many units of currency it's worth
- E.g. a low quality top costs US $10, a high quality one can cost US $100 +
- Store of value
- You can save money because it keeps its value
- Saving enables use of money in the future
- Standard for deferred payments
- Borrowers are able to borrow money and pay it back at a future date
- Medium of exchange
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