What is money? State the four functions of money.

1.	What is money? State the four functions of money.
Answer» Money is anything that is generally accepted by people of a country as a medium of exchange and measure of value. Functions of Money- i) Medium of exchange- People can sale and purchase (exchange) goods and services through money. ii) Measure of Value (Unit of value)- The values of different goods and services can be expressed in term of money iii) Standard of deferred payments- Future transactions or payments can be made in terms of money. iv) Store of value - The money has a quality of storability .So value of goods can be stored in term of it for long period of time.

Answer»

Money is anything that is generally accepted by people of a country as a medium of exchange and measure of value.

Functions of Money-

i) Medium of exchange- People can sale and purchase (exchange) goods and services through money.

ii) Measure of Value (Unit of value)- The values of different goods and services can be expressed in term of money

iii) Standard of deferred payments- Future transactions or payments can be made in terms of money.

iv) Store of value - The money has a quality of storability .So value of goods can be stored in term of it for long period of time.

Discussion

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