A1 - Functions of Money

january 2024 exam

Barter

system of the exchange of goods and services

Money - Personal

widely used for making payments and accounting for debits and credits. flows in and out.

comes from many sources eg: wages, gifts, savings. goes out for necessities and wants

Money - Business

goes out to pay day-to-day expenses and fund expansion. eg: sales, bank loans, selling shares

Float on Stock Market

for those who have bought shares in a market. as they reinvest their funds the share price increases and the investor will receive a dividend

Unit of Account

allows us to place monetary value on goods and services

the price of goods and services show us the unit of account/value

Means of Exchange

businesses and customers can buy/sell goods or services using money

allows trade

Store of Value

can be used in the future as it keeps its value

saving allows us to buy goods and services in the future

Legal Tender

legally recognised as a form of payment

money is widely used and recognised for money transactions eg: receiving wages, deposits and payments