Functions of money

5 flashcards · Economics · by Addaneye

1. What are the four functions of money?

   medium of exchange unit of account store of value deferred payment

2. Medium of exchange as a function of money

   We can sell the stuff we produce for money and use it to buy stuff we want from others

3. Unit of account as a store of value

   Makes it easier to compare the value of goods

4. Store of value as a function of money

   You can store your money and save it for later

5. Deferred payment as a function of money

   You can borrow money to buy stuff now and they pay the money back in the future