Function Of Money

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Title: Function Of Money

Essay Details:

Subject: Business

Author: Lucille A

Date: October 22, 2011

Level: University

Grade: B

Length: 3 / 717

Essay text:

Cash or bills, coins and accounts at banks are considered as money. Whether money is currency or checking account, it has three primary functions in the economy: as a medium of exchange, a unit of account, and a store of value. Firstly, in almost all market transactions in our economy, money in the form of currency or checks is a medium of exchange or we can say it is used to pay for goods and services. The use of money as a medium of exchange promotes economic efficiency by eliminating much of the time spent in exchanging goods and services. In fact, without money the price of every goods and services that we want to trade would have to be expressed in terms of exchange ratios...

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