describe the functions of money?
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Answered by
108
The function of money in our daily life had been a major part of our life.
The money helps in the exchange of goods and other material. It acts as an intermidiate between consumer and produse. So we can say that money plays a major role in our lives
The money helps in the exchange of goods and other material. It acts as an intermidiate between consumer and produse. So we can say that money plays a major role in our lives
Answered by
198
Money's most important function is as a medium of exchange to facilitate transactions.
In order to be a medium of exchange, money must hold its value over time; that is, it must be a store of value.
Money also functions as a unit of account, providing a common measure of the value of goods and services being exchanged.
Without money, all transactions would have to be conducted by barter, which involves direct exchange of one good or service for another.
In other words, in a barter system, exchange can take place only if there is a double coincidence of wants.
Money effectively eliminates the double coincidence of wants problem by serving as a medium of exchange that is accepted in all transactions.
In order to be a medium of exchange, money must hold its value over time; that is, it must be a store of value.
Money also functions as a unit of account, providing a common measure of the value of goods and services being exchanged.
Without money, all transactions would have to be conducted by barter, which involves direct exchange of one good or service for another.
In other words, in a barter system, exchange can take place only if there is a double coincidence of wants.
Money effectively eliminates the double coincidence of wants problem by serving as a medium of exchange that is accepted in all transactions.
alam8:
very nice answer
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