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Functions & Roles of Money (Functions of Money (Unit of Account: This…
Functions & Roles of Money
Value of Currency:
The value of currency is used to be based against amount of gold the country has. However in the modern world it is now based off from paper. Quantity of easy means when they print more money, as the more they print the more the worth currency will fall.
Functions of Money
Unit of Account:
This is a way of being able to record money. money serves as the most common base of comparison that people use to present different prices of goods and services but to also record debt.
Means of Exchange:
Money allows us to do different things throughout out day to day lives like buying goods or services which is exchanged with money.
Store Value:
Money acts like a store of value over time.
Legal Tender:
Accepted to buy goods. It allows individuals to buy goods and services later,