ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It serves as a unit of account
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Good ‘store of value’
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Makes lending and borrowing easy, compared to using ‘things’
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All of the above
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Detailed explanation-1: -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-2: -Money is a system of value that facilitates the exchange of goods in an economy. Using money allows buyers and sellers to pay less in transaction costs, compared to barter trading. The first types of money were commodities. Their physical properties made them desirable as a medium of exchange.
Detailed explanation-3: -A medium of exchange. A standard of deferred payment. A store of wealth. A measure of value. 13-Dec-2022
Detailed explanation-4: -Function # 1. A Medium of Exchange: Function # 2. A Measure of Value: Function # 3. A Store of Value (Purchasing Power): Function # 4. The Basis of Credit: Function # 5. A Unit of Account: Function # 6. A Standard of Postponed Payment: