ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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unit of account
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medium of exchange
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store of value
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fiat money
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Detailed explanation-1: -One of the functions of money in an economy is that it serves as a store of value. A store of value is something that people use to transfer purchasing power from the present to the future. While money is an asset that can store value, it’s not the only type. Gold and silver, for example, act as stores of value.
Detailed explanation-2: -To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.
Detailed explanation-3: -The 4 different types of money as classified by the economists are commercial money, fiduciary money, fiat money, commodity money.
Detailed explanation-4: -Money is anything that serves as a medium of exchange. Other functions of money are to serve as a unit of account and as a store of value. Money may or may not have intrinsic value. Commodity money has intrinsic value because it has other uses besides being a medium of exchange.