Flashcards
Functions of Money
Flashcards do conjunto (4)
- 1A Means of Exchange/Primary FunctionMoney enables people to freely exchange g&s that they don't produce. Overcomes bartering.
- 2A Measure of volume/Unit of accountThe amount of money given for a product is the reflection of the value of that product
- 3A means of Deferred PaymentGet a good now and pay later as money won't lose value. Increase sales & stimulate economy.
- 4A store of WealthSave money now and will still be valuable later. High inflation undermines this