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1. Less bulky
2. Durable
3. Consistent Quality
Money and its functions
Money : Assets that people are generally willing to accept
in
exchange for goods and services or for payment of debts.
Functions of Money
3. Standard of Deferred payment
1. Medium of Exchange: - Many contracts promise to pay
- Willing to accept fixed sums of money well into the
- Money is universally future
accepted - borrowing and lending possibilities
4. Store of Value
2. Unit of Account: - If you do not use all your dollars to
- Measure the relative values buy goods and services today, you
of goods and services. can hold the rest to use in the future.
- Money is a useful unit of - money does not lose much of its
value
account only if its value
relative to the average of all
other prices doesn’t change
too quickly.