What are the 4 uses of money?
Money serves four basic functions:
- It is a unit of account.
- It is a store of value.
- It is a medium of exchange.
- It’s a standard of deferred payment.
What are the 3 Uses of money quizlet?
What are the three basic functions of money? Money as a medium of exchange, money as a unit of account, money as a store of value.
What is money and its uses?
Money is a generally accepted, recognized, and centralized medium of exchange in an economy that is used to facilitate transactional trade for goods and services. The use of money eliminates issues from the double coincidence of wants that can occur in bartering.
What are the 6 uses of money?
The following points highlight the top six functions of money.
- 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 are the uses of money class 10?
Solved Question on Functions of Money
- Money works as a medium of exchange.
- It helps to measure the value of a good or service.
- Money plays an important role in lending and borrowing.
- A person can store the purchasing power of money.
What are the three 3 sources of value for money?
Money comes in three forms: commodity money, fiat money, and fiduciary money. Most modern monetary systems are based on fiat money. Commodity money derives its value from the commodity of which it is made, while fiat money has value only by the order of the government.
What are the 7 functions of money?
Answer 6. Functions of Money:
- Medium of Exchange: The most important function of money is to serve as a medium of exchange or as a means of payment.
- Measure of Value:
- Standard of Deferred Payments:
- Store of Value:
- Transfer of Value:
- Distribution of National Income:
- Maximisation of Satisfaction:
- Basis of Credit System: