Ask Question
17 December, 12:18

What are the three roles of money in an economy

+2
Answers (1)
  1. 17 December, 12:33
    0
    The three functions/roles of money in an economy are:

    1) Medium of Exchange: When money are used to intermediate exchange of goods and services.

    2) Unit of Account: Standard numerical unit of measurement of market value goods, services, or other transaction. Money must be divisible into smaller units without loss of value and a specific weight or size to be verifiably countable.

    3) Store of Value: To act as a store value, money should be reliably saved, stored, and retrieved. It also must be predictably usable as a medium of exchange when it is retrieved.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “What are the three roles of money in an economy ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers