Question

what is money? what are the functions of money and why we study money

u 15. AUSWUE LE TULUWIB ICU 2) What is money? What are the functions and why we study money? ( Points)

Answer 1

Money is an economic unit that serves as a recognized medium of exchange for transactional purposes in an economy.

Functions of money-

1. It serves as a Medium of Exchange

2. It provides a Measure of Value

3.A Store of Value

4.A Unit of Account

We need to study money because it is viewed as a lubricant that greases the wheels of economic activity. Without money, the transactions that make up our daily economic routine would be unimaginably difficult, and saving and investing would be almost full-time jobs. Money also plays a key role in influencing the behavior of the economy as a whole and the performance of financial institutions and markets.