Answer to Question #237680 in Finance for Clarice Bronwyn He

Question

Various concepts associated with money

Answer 1

Money has three main purposes:

1) a medium of exchange- people used money to acquire goods and services they do not have.

2) a store of value- when a person has accumulated a lot of money, he can store and use them to acquire goods and services in future.

3) a unit of account- money can be used to measure the value of goods and services