Identify 3 uses of money and give an example of each

Question

Social Studies

Efrain Avery

31 October, 17:00

Identify 3 uses of money and give an example of each

+1

Answers (1)

Know the Answer?

Nikhil Johnston · Answer 1

1. medium of exchange

2. unit of account

3. store of value

Medium of Exchange: Anything used to determine value during the exchange of goods and services; replaces barter. Because money is a medium of exchange, you can use amounts of it to exchange for any good or service you may want. It is not limited.

Unit of Account: Money that serves as a unit of account provides the means for comparing the values of goods and services. It allows you to compare the cost of one good over another, recognize the difference in cost, and get the best bang for your buck.

Store of Value : Money that serves as a store of value keeps its value if you store it over time. In many years, the money will still be as valuable and will be recognized as a medium of exchange when you decide to spend it.