Fingram 2024-08-15 0
Functions of money
Dear friends, did you know that money has specific functions?
If not, remember that money has the following functions:
1️⃣ A measure of value - money expresses the value of all goods.
2️⃣ Medium of circulation - money plays an intermediary role in the process of trade transactions.
3️⃣ Means of payment - money is used for credit transactions, as any debts are paid with it.
4️⃣ Means of accumulation - people usually keep their savings and wealth in monetary form. (In ancient times, this function of money was performed by gold.)
5️⃣ World money - when money fulfils the above four functions internationally, it is recognised as world money.
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