business

• 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