ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Money
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Unit of Account
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Goods
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Services
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Detailed explanation-1: -Money serves as a medium of exchange, as a store of value, and as a unit of account.
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: -In modern economies, the medium of exchange is currency.
Detailed explanation-4: -Money helps to facilitate trade because people in the economy generally recognize it as valuable. Money is called medium of exchange because money is a widely accepted token that can be used for exchange of any good or service.
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.