Answer to Question #82608 in Microeconomics for Shykira

Question

What are the three main purposes of money? In your answer, be sure to explain why each purpose helps us to eliminate the need for bartering.

Answer 1

Money is often defined in terms of the three functions or services that it provides. Money serves as a medium of exchange, as a store of value, and as a unit of account. Each of these purposes help us to eliminate the need of bartering and do it even better.