Money Functions and Characteristics

In: Business and Management

Submitted By paw9680
Words 298
Pages 2
ch Paul Wielgus ECO 212 Money: Functions and Characteristics Momoh Dudu July 18th, 2014

Money is something we all use every day and something we all need to survive. Money also provides us with our needs and wants. Our needs being food, water, shelter, transportation and wants being things like TVs, boats, big houses or what some people may call material possessions. Money has three basic functions in our economy today unit of account which is where money takes the place of having to have something of equal value to barter for you would pay a set common price for the good or service. Next we have a medium of exchange which is where people work and get paid and income or go to the store and spend money on groceries. Money is our medium of exchange in today’s world. Finally we have store of value which is basically saving your money that you earn for future use. Humans would save money like a squirrel saves nuts for the winter it is the same concept a squirrel would not gather a bunch of nuts and then eat them all the same day, as a human would try not to spend their entire paycheck every time they get paid. I use money in all three of these functions, unit of account, is how much I pay for supplies for my business it is the same every time. Medium of exchange is I get paid to perform a service I then take that money and pay bills for my household or buy food for us to eat. Store of value, I try to save as much money as possible for my children’s future and I hope to someday retire, however with five children it is difficult to save…...

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