*Chapter Terms* |
| Money: Must serve as a medium of exchange,act as a standard of value, and be a store of value |
| Barter: Trade goods or services directly for other goods or services. |
| Currency: Paper money and coins provided by government. |
| Checkbook Dollars: Money that people have in their checking acounts. Most common form of money. |
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Functions of Money
People use money as a medium of exchange , which means buyers and
sellers use money as a mean of payment for goods and services. Money is go-between, that facilates each exchange. Without money would be forced to *barter*. In a system that use money both buyers and sellers agree on exchanging money .
Standard of Value: Money serves as a vehicle for placing value on goods and services. Money ths functions as a standard of value. Helps us compare value of different goods and services.
Store of Value: Money has the ability called store of value,to hold its value over time, it doesn't spoil, rot, or distintegrate.
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