What are the functions of money economics?
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.
What are the four functions of money as described in the textbook?
whatever serves society in four functions: as a medium of exchange, a store of value, a unit of account, and a standard of deferred payment.
What are the 7 functions of money?
Top 6 Functions of Money –Discussed
- 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:
What is money in economics Igcse?
Money is a measure of value. Money acts as a unit of account, allowing us to compare and state the worth of different goods and services. Money is a store of value. It holds its value for a long time, allowing us to save it for future purposes. Money is a means of deferred payment.
What are some of the functions of money?
Money serves as a medium of exchange, as a store of value, and as a unit of account. Money also functions as a unit of account, providing a common measure of the value of goods and services being exchanged.
What does the second edition of the IGCSE economics workbook do?
This second edition of the workbook helps students understand Economics by applying tools of economic analysis, undertaking calculations and practising writing longer responses Resources align to the syllabus they support, and have been through a detailed quality assurance process.
How is money used as a medium of exchange?
First, money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Instead of exchanging accounting services for shoes, the accountant now exchanges accounting services for money.
Which is an extension of the first function of money?
A Standard of Postponed Payment: This is an extension of the first function. Here again money is used as a medium of exchange, but this time the payment is spread over a period of time.