Functions of Money- Macro Topic 4.3

The video tutorial explains the concept of money, its three main functions—medium of exchange, unit of account, and store of value—and the impact of inflation on stored value. It distinguishes between fiat money, which has no intrinsic value, and commodity money, which does. The video also discusses the historical context of the gold standard and uses Clifford dollars as a teaching tool to introduce currency exchange concepts.

What are the three main functions of money as described in the text?

How does money serve as a unit of account? Provide an example.

What happens to the stored value of money during inflation?

Explain the difference between fiat money and commodity money.

What lesson did the teacher aim to convey through the example of Clifford dollars?