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. Money may or may not have intrinsic value.

Detailed explanation-3: -money: anything customarily. used as a medium of exchange, a unit of accounting, and a store. of value.

Detailed explanation-4: -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.

Detailed explanation-5: -Diamonds would be a decent form of currency. They fulfill some of the four functions of money. They have a set value and can be used as a medium of exchange and a store of value. They do not work well as a unit of account though since their size and quality vary.