Function of money

• 4 functions of money

  • Unit of account
  • Means of exchange
  • Store of value
  • Legal tender
• What is Unit of account?

  Money can be used to place a value on goods and services.
• What is Store of value?

  Money has a value, it can be stored then used to pay for goods and services in future e.g banks
• What is Means of exchange?

  Money is used to buy, sell or trade goods and services.
• What is Legal tender?

  Money is the legal means you use to pay for goods and services - national currency.