Question

Money is defined as a medium of exchange, unit of account and store of value. Explain...

Money is defined as a medium of exchange, unit of account and store of value.
Explain these in details
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The functions of money have been explained below respectively :-

1. Medium of exchange - Money serves the function of medium of exchange as it can be used to buy/sell goods and services in the market.

2. Unit of account - This function serves money as a measure of Value of all the goods and services in market. For example - You wish to buy four mangoes - its worth is divisible in terms of a monetory value

3. Store of value - Money can be used to store value due to its durability in terms of paper money and coins. You can store cash today, and it will be still worth its value after reducing inflation amount five years from today. In the past, people used to buy bullocks in terms bif storing wealth, which did not serve the purpose as bullocks have a definite life

I hope this helps

Took real efforts

Please press like button

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Money can be used as a medium of exchange, unit of account and store of value....
Money can be used as a medium of exchange, unit of account and store of value. Question 1 options: True False Question 2 (1 point) If it is difficult to convert an asset into a country's medium of exchange, we say that asset is liquid. Question 2 options: True False Question 3 (1 point) If money has no intrinsic other than the value goverment gives it, we call the money fiat money. Question 3 options: True False
Indicate which of the functions of money (a medium of exchange, a unit of account, and...
Indicate which of the functions of money (a medium of exchange, a unit of account, and a store of value) each of the following performs in the U.S. economy. Check all that apply. Medium of Exchange Unit of Account Store of Value Plastic credit card House Mexican peso Demand deposit Given your answers to the previous task, indicate whether each of the following is considered money in the U.S. economy. Money Yes No Plastic credit card House Mexican peso Demand...
The three functions of money are to serve as: (1) a medium of exchange, (2) a...
The three functions of money are to serve as: (1) a medium of exchange, (2) a unit of account, and (3) a store of wealth. In a small paragraph explain each of these functions.
"Gold may be a better store of value than US money,but would function as a poorer...
"Gold may be a better store of value than US money,but would function as a poorer medium of exchange and unit of account than US money." Do you agree with this statement? If yes, explain why you agree. If no, explain why disagree.
State whether each condition is consistent with either a medium of exchange, a store of value,...
State whether each condition is consistent with either a medium of exchange, a store of value, or a standard of value. a) You put part of your paycheck into a 401(k) retirement plan. Standard of value Store of value Medium of exchange b) You purchase an Amazon Echo. Medium of exchange Standard of value Store of value c)  You notice that the price of a cafe latte, which you drink each morning on the way to work, increases by 50 cents....
Please answer all questions, thanks. 1. The advantage of money as a store of value is...
Please answer all questions, thanks. 1. The advantage of money as a store of value is that: A. It is the only asset that never loses its value. B. Its value does not diminish as inflation accelerates. C. Its value is guaranteed by the government. D. It provides investors with a high return. E. It provides the convenience of being already in the form that it can be used as a medium of exchange. 2. When money allows us to...
QUESTION 10 Commodity money has value independent of its use as money. has little to no...
QUESTION 10 Commodity money has value independent of its use as money. has little to no value independent of its use as money. is backed by a valuable commodity such as gold. can be used to purchase commodities, but not services. 2 points    QUESTION 11 If whole tomatoes were money, which of the following functions of money would be the hardest for tomatoes to satisfy? unit of account certificate of gold medium of exchange store of value 2 points...
Inflation affects money by increasing money's efficiency as a medium of exchange limiting money's role as...
Inflation affects money by increasing money's efficiency as a medium of exchange limiting money's role as a store of value reducing the supply of money reducing transactions and search costs
1) Good money functions as a a. means of exchange, unit of account, and store of...
1) Good money functions as a a. means of exchange, unit of account, and store of value. b. valuable commodity like gold, silver, gem diamond, and so on. c. fiat, even if some may not accept it as a medium of settling debt. d. All the above answers are correct. 2) Which policy tool does the Fed often use to change the quantity of money in the economy? a. Open market operations. b. The discount rate. c. The required reserve...
QUESTION 7 Money is any commodity or token that is issued by the government. generally accepted...
QUESTION 7 Money is any commodity or token that is issued by the government. generally accepted as a means of payment. generally accepted as a means of measurement. a store of value. 2 points    QUESTION 8 The functions of money are medium of exchange, unit of account, and store of value. medium of exchange, the ability to buy goods and services, and checking accounts. medium of exchange, the ability to buy goods and services, and the ability to pay...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT