Money

Money Functions

• **Store of Value:** Money can be saved and stored for future use, preserving its purchasing power.
• **Medium of Exchange:** Money facilitates transactions by acting as an intermediary between buyers and sellers.
• **Unit of Account:** Money provides a common measure to value and compare the worth of different goods and services.
• **Facilitate Credit:** Money enables the extension of credit and loans, supporting economic activity.

Exam Tip: Understand how each function of money contributes to an efficient economy and be prepared to provide relevant examples.