function and role of money

• state the 4 functions of money: medium of exchange, unit of account, store of value, and legal tender
• define unit of account: anything that allows the value to be expressed in a way that can be understood and compared
• define means of exchange: how money makes the purchasing of goods and services easier.
• define store of value: the ability to store your money and save it for later
• define legal tender: a legally recognised form of payment that is backed by the government
• what 6 things influence the role of money?

  • personal attitudes
  • culture
  • life events
  • interest rates
  • life stages
  • external influences and trends