A1 - Functions of Money Flashcards
1
Q
Define “unit of account”.
A
Monetary value on goods and services.
2
Q
Define “means of exchange”.
A
When money acts as an intermediary between the buyer and the seller in trading.
3
Q
Define “store of value”.
A
The use of money in future as it keeps its value.
4
Q
Define “legal tender”.
A
A legally recognised form of payment.
