Functions of money

What does this refer to? This refers to anything that allows the value of something to be expressed in an understandable way, and in a way that allows the value of items to be compared.

• Means of Exchange

• Store of Value

• Unit of account

• Legal Tender

What does this refer to? This can refer to any asset whose “value” can be used now or used in the future i.e. its value can be retrieved at a later date. This means that people can save now to fund spending at a later date.

• Store of Value

• Legal Tender

• Unit of Account

• Means of Exchange

Money that has a legal sanction by the government behind it is called l................. t.............. means money under the law of land. It is the money issued by monetary authority or government which cannot be refused by any person in payment for transactions. The tender or payment of it constitutes by law the sufficient discharge of debt.

(a)  

Money allows goods and services to be t (a)   without the need for a barter system. Barter systems rely on there being a double coincidence of wants between the two people involved in an exchange.

External influences is something that a business has no c (a)   over, for example the economy.

What do we mean by culture?

• The cost of borrowing

• “The way of life, especially the general customs and beliefs, of a particular group of people at a particular time”

• The stage of life they are in

• A life event

Someone is buying a house - what does this statement refer to?

(a)  

The cost of borrowing has gone up. What term does this refer to?

(a)  

Due to interest rates and rising inflation, there may be less spending. Which factor below does this statement refer to?

• Culture

• Life Stages

• Interest Rates

• External Influences

Children often buy sweets and toys with their pocket money. They rely on their parents for finance. What does this statement refer to?

• External Influences

• Interest Rates

• Life Events

• Life Stages