Functions of money Flashcards
1
Q
unit of account
A
allows us to place a monetary value on goods and services.
the price of goods and services show the unit of account e.g. a chocolate bar is 60p or a new car is £30K.
2
Q
means of exchange
A
it allows us to trade.
businesses and customers can buy and sell goods and services using money.
3
Q
store of value
A
it allows us to use it in the future as it keeps its value.
you might have money saved in the bank which you can then use to buy goods and services in the future.
4
Q
legal tender
A
it is a legally recognised form of payment.
money is widely recognised and used for all sorts of transcati9ns from buying an ice cream or getting a haircut to paying a deposit on a house and receiving your wages.
