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When economists say that money is a store of value does it mean that money can be used to measure the value of other commodities?
Money has three functions, being a: 1) store of value; 2) unit of account; 3) medium of exchange. The first, a store of value, implies that money maintains and stores its value over time - unlike many other mediums of exchange, which can depreciate. Money is intended to be storeable, retrievable, and reuseable as a medium of exchange itself. Therefore, being a store of value does not mean that money can be used to measure the value of other commodities - that is its third function, medium of exchange.
What are the three basic function of money?
1. A store of value - it holds value, 2. A medium of exchange - it is used in financial transactions and 3. A unit of account - it used to measure the value of goods.
What the three functions of money?
Money is often defined in terms of the three functions or services that it provides. Money serves as a medium of exchange, as a store of value, and as a unit of account.
What is anything that is used to determine values during the exchange of goods and services called a. Medium of exchange b. Barter c. Unit of account d. Store of value?
Anything that is used to determine values during the exchange of goods and services called a unit of account. This field of study is called macroeconomics.
What are the 3 main fuctions of money?
Money as a Medium of Exchange, Money as a Measure of Value, Money as a Store of Value.
When economists say that money is a store of value does it mean that money can be used to measure the value of other commodities?
Money has three functions, being a: 1) store of value; 2) unit of account; 3) medium of exchange. The first, a store of value, implies that money maintains and stores its value over time - unlike many other mediums of exchange, which can depreciate. Money is intended to be storeable, retrievable, and reuseable as a medium of exchange itself. Therefore, being a store of value does not mean that money can be used to measure the value of other commodities - that is its third function, medium of exchange.
What are the three basic function of money?
1. A store of value - it holds value, 2. A medium of exchange - it is used in financial transactions and 3. A unit of account - it used to measure the value of goods.
What the three functions of money?
Money is often defined in terms of the three functions or services that it provides. Money serves as a medium of exchange, as a store of value, and as a unit of account.
What are the three functions of money?
Money is often defined in terms of the three functions or services that it provides. Money serves as a medium of exchange, as a store of value, and as a unit of account.
Which of the following is not a characteristic of moneya. A medium of exchangeb. A store of valuec. A unit of accountd. A source of barterClear selectionYea?
Which of the following is not a characteristic of money? a. A medium of exchange b. A store of value c. A unit of account d. A source of barter Clear selection
What is anything that is used to determine values during the exchange of goods and services called a. Medium of exchange b. Barter c. Unit of account d. Store of value?
Anything that is used to determine values during the exchange of goods and services called a unit of account. This field of study is called macroeconomics.
What are the 3 main fuctions of money?
Money as a Medium of Exchange, Money as a Measure of Value, Money as a Store of Value.
What is the most important requirement for money to be a medium of exchange?
The most important requirement for money to be medium of exchange is the value of money.
Who or what is fofoa?
FOFOA is an anonymous blogger discussing the theory "freegold" Freegold is the theory that moneys two functions, medium of exchange and store of value will separate.
What gives fiat money its value as a medium of exchange?
Laws set by the government give Fiat money its value as a medium of exchange. Unlike traditional money or currency, it has no good which act as a medium to back it up.
Which of the following has no value except as a medium of exchange?
Fiat money
What are the six charateristics of money?
Money is generally considered to have the following characteristics, which are summed up in a rhyme found in older economics textbooks: "Money is a matter of functions four, a medium, a measure, a standard, a store." That is, money functions as a medium of exchange, a unit of account, a standard of deferred payment, and a store of value.[2][7][8] There have been many historical arguments regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. One of these arguments is that the role of money as a medium of exchange is in conflict with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate.[8] Others argue that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time.[9] 'Financial capital' is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender. 6 Characteristics of money -Durability -Portability -Divisibility -Uniformity -Limited Supply -Acceptability did i already answer your question?!hahaha>>
