ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money is a liquid asset used to facilitate transactions of value. It is used as a medium of exchange between individuals and entities. It’s also a store of value and a unit of account that can measure the value of other goods.

Detailed explanation-2: -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.

Detailed explanation-3: -Money serves three basic functions. By definition, it is a medium of exchange. It also serves as a unit of account and as a store of value-as the “mack” did in Lompoc.

Detailed explanation-4: -Medium of Exchange: Right from the beginning, money has been performing the important function of medium of exchange in the society. Money facilitates transactions of goods and services as a medium of exchange. Producers sell their goods to wholesalers in exchange of money.

Detailed explanation-5: -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. Modern economies use fiat money-money that is neither a commodity nor represented or “backed” by a commodity.