business

Cards (10)

  • 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