Define money and state three of its functions?
Answers
Answer:
population
Explanation:
money is the best thing ever
Answer:
Money can be defined as a commodity spent in exchange for goods and services between two distinct people.
Three functions of Money are-
- Money eliminates the need for barter.
- Money is one of the most liquid stores of value.
- Money helps in estimating the value of goods being exchanged.
Explanation:
Money provides a means of obtaining goods without the exchange of goods of the same value. This eliminates acquiring goods of the same value to conduct an exchange.
This eliminates the desirability of goods which played a huge part in the barter system. Secondly, money is one of the most prominent and liquid stores of value. This is because it is universally accepted and has a very high acceptance rate.
Lastly, it determines the actual value of the goods being exchanged. Price of a product or a service determines its market value. Moreover, the prices can be negotiated which wasn't a generic option in case of barter.