Question

What is Money ? Clarify any three functions of Money.
​

Answer 1

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context

Functions of Money

Money has three primary functions. It is a medium of exchange, a unit of account, and a store of value: Medium of Exchange: When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange.

Answer 2

Answer:

The Definition of Money

Money is any object that is generally accepted as payment for goods and services and the repayment of debt

Functions of Money

Money has three primary functions. It is a medium of exchange, a unit of account, and a store of value:

• Medium of Exchange: When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange.
• Unit of Account: It is a standard numerical unit of measurement of market value of goods, services, and other transactions. It is a standard of relative worth and deferred payment, and as such is a necessary prerequisite for the formulation of commercial agreements that involve debt. To function as a unit of account, money must be divisible into smaller units without loss of value, fungible (one unit or piece must be perceived as equivalent to any other), and a specific weight or size to be verifiably countable.
• Store of Value: To act as a store of value, money must be reliably saved, stored, and retrieved. It must be predictably usable as a medium of exchange when it is retrieved. Additionally, the value of money must remain stable over time.

hope this helps you....