Examine the different functions of currency.
Answers
Answer:
coins are used for trade and for financial resources . people exchange thingsand some people use coins as the population grows printed currency is came into power
Answer:
Explanation:
The following are the different functions of currency:
Medium of Exchange – In the present economy era money acts as an intermediary role. It helps in smooth and convenient functioning of the exchange system.
Standard of Postpone Payments – It plays a vital role in borrowing and lending . Loan is taken in the form of money which is repaid over a period of time .
Store of Value – It can be saved and kept for future use. One can save little money by way of savings for future course of action and spend a little as per one`s current income.
Measure of Value – Money helps in ascertaining the value of a service or product required for its possession. This helps in creating a profitable activity through mutual exchange.
A Unit of Account- It is used as a unit of account. It means that the money is used to record and measure financial transactions along with the value of goods or services produced in a country at a particular time.
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