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Money
A method of
exchange
typically in the form of coins and
banknotes
that is
legal tender
Managing money
1. Ensuring a business/person receives more
money
than they spend
2. Enabling
investment
and
growth
The value of currency used to be based on the amount of
gold
a country had (the gold standard), which was removed in
1931
in the UK</b>
Central banks
can decide how much money to print (
quantitative easing
), which can devalue the currency
Functions of money
Unit
of account
Means of
exchange
Store
of value
Legal
tender
Unit of account
A nominal measure of currency used to value costs,
goods
,
services
, assets or liabilities
Means of exchange
A legal tender that has value for
exchange
between parties
Store of value
An asset that can be saved and exchanged at a later date, though subject to
inflation
Legal tender
Legally accepted and valued by a government or country as a form of
payment
Combining the
four
functions gives money its
purpose