Question

explain the following functions of money a medium of exchange b store of value​

Answer 1

Answer:

Medium of exchange: Most important function of money is as a medium of exchange to facilitate transactions. ... Use of money has separated the process of sale and purchase. 2. Store of value: In order to be a medium of exchange, money must hold its value over time; that is, it must be a store of value.

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Answer 2

Meaning of medium of exchange and store of value.

Explanation:

Functions of money.

a) Medium of exchange:

• Money acts as a medium of exchange which means that it can be used to purchase things.
• Money can be measured in the exact amount of the thing in return. It is also known as legal tender.
• Money can also be used in part of the world to exchange things and commodities.

b) Store of value:

• Money acts as a store of value.
• Unlike commodities, money is not perishable and can be stored over a period of time. The value of money remains consistent due to which it can be stored.
• It is this function of money that facilitates investments in an economy.