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BTEC Business Unit 3 LO:A Functions of Money

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

How many functions of money are there?

(a)  

2.

Identify the four functions of money

a)

Unit of account, means of exchange, store of account and legal tender

b)

Store of account, means of exchange, store of value and money tender

c)

Unit of account, means of exchange, store of value and legal tender

d)

Unit of account, means of exchange, store of tender and legal tender

3.

The acronym LUMS (also Scottish for chimney) can be used to remember the functions of money. What does the L stand for?

(a)  

4.

Identify the function of money being explained


Money can be placed in a bank and then used in the future to buy goods and service.

a)

Unit of account

b)

Means of exchange

c)

Store of value

d)

Legal Tender

5.

The acronym LUMS (also Scottish for chimney) can be used to remember the functions of money. What does the U stand for?

(a)  

6.

Identify the function of money being explained


Money is the official method of payment for goods and services and the national currency of a country.

a)

Unit of account

b)

Means of exchange

c)

Store of value

d)

Legal Tender

7.

The acronym LUMS (also Scottish for chimney) can be used to remember the functions of money. What does the M stand for?

(a)  

8.

Identify the function of money being explained


Places a value on goods and services. In the UK this is pounds and pence.

a)

Unit of account

b)

Means of exchange

c)

Store of value

d)

Legal Tender

9.

Identify the function of money being explained


Used to buy or trade goods and services.

a)

Unit of account

b)

Means of exchange

c)

Store of value

d)

Legal Tender

10.

The acronym LUMS (also Scottish for chimney) can be used to remember the functions of money. What does the S stand for?

(a)