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Money serves as a standard for deferred payments. � The value of all commodities and services can be expressed in monetary terms. No matter whether money is gold or paper or beads or knives, in any economy it has three functions. � 3. <> <> � These functions help us transit in goods and services with ease. <> �z@� �0&�2�Գ��ɹ 17 0 obj � The demand for any good or service is usually pictured in economics as a function of its price, holding income and other factors constant. �z@� �0&�2�Գ��ɹ stream x�3R��2�35W(�*T0P�R0T(�Y@��� Everything that fulfills these three functions can be considered money. <> x��ڱ � A��{���4S��\���������I� endobj �z@� �0&�2�Գ��ɹ 6 0 obj <> endobj � stream Money also helps in the distribution of national income. If there were no money, goods would have to be exchanged through the process of barter (goods would be traded for other goods in transactions arranged on the basis of mutual need). � endstream Functions of Money. Write this list on the chalkboard or on chart paper. /Resources 20 0 R /Filter /FlateDecode /Length 67 >> �!>F Producers sell their goods to the wholesalers in exchange of money. stream So money serves all of these functions— it is a medium of exchange, store of value, unit of account, and standard of deferred payment. This worksheet is about the functions of money. 1 0 obj <>/Metadata 336 0 R/Pages 2 0 R/StructTreeRoot 61 0 R/Type/Catalog>> endobj 336 0 obj <>stream stream The task is to match functions with definitions. Money has no power to satisfy human wants, but it commands power to purchase those things, which have utility to satisfy human wants. Money and its Functions. <> �!>& Products are exchanged for money that money can be then used to buy other product. stream endstream �_��YV V V V V V�t,++++++p:���������� endstream � endobj endobj It serves as a medium of exchange. /Resources 20 0 R /Filter /FlateDecode /Length 67 >> Store of Value: It can be saved. A Medium of Exchange: The only alter­native to using money is to go back to the barter system. They will be Money facilitates transactions of goods and service as a medium of exchange. Find out all about the primary functions of money using this awesome quiz and worksheet. � <> 11 0 obj �!>� endobj stream Functions of Money. 29 0 obj x�3R��2�35W(�*T0P�R0T(�Y@��� v`$�0B�!L�&B!��~���������6�s�B���l�,#!���Da"�0B�!,��"~���[��߫��Ǿ��ޘ�L/ !L�&B!���Da"��ї2�Z9��~���65=�T�#���hG���0B�!L�&B!���S'��}v5V|�Ԓ���Q\��Ha"�0B�!L�&B�jk�}�gu��Z�"t덹�d��#!���Da"�0B�!�(�(Z�@����Ϧ4�RS�&i�8Yt�2B�!L�&B!���F������g�����}سo��_S�z=W�|���Da"�0B�!L�6�E�Z�y��������!����(����Da"�0B�!l�)��;�=Wu顭#Zq���Ì�&B!���Da"�0B���+��sM� U��z��R�nƼ2�FB!���Da"�0BX`�bLcnO�s�U�F�I-�i)�>B�!L�&B!����8Ʌ���`hti���}�z^//�Ha"�0B�!L�&BLQ���I���WQ�?VO�U�����'B!���Da"��Q�(���s�b�k�}�Nr���VK�c$�0B�!L�&B!���8� ��y=�qԟ@��K|یFB!���Da"�0B�)�ŷ\z�J��+�w}��m3�(����Da"�0B�!L�6�j��Ha"�0B�!L�&BLQč�&��J����q� ���>�/�.#!���Da"�0B�!���.#!���Da"�0B�!L�&B!���Da"�0B�!L�y������? To begin, let's think about a frontier household. Money is a set of assets that are generally used and accepted as a medium of exchange for goods and services in an economy. x�3R��2�35W(�*T0P�R0T(�Y@��� Apart from its function as a medium of exchange, money also serves as a store of value and a unit of account. endobj Secondary functions of money include two functions like money as a store of value and as a standard of differed payments. � x�3R��2�35W(�*T0P�R0T(�Y@��� �!>� �z@� �0& � This function of money facilitates trade and helps in conducting transactions in an economy. � .� Commercial finance is made available to the traders through bills of … 3. The following are the utmost important functions of money. >> <> stream <> 7 0 obj Other Functions: Money also performs such functions which affect the decisions of consumers and governments. 23 0 obj � �\ } ' � �!> However, it also has developed secondary functions that derive from its use as a … � 13 0 obj Microsoft® Word 2010 <> Microsoft® Word 2010 In a think-pair-share activity, students first work independently determining how a list of items fulfill all or some of the functions of money in the US economy. �����c����� k�� ��87�%��x ��ebbbbbN���������C`Y�X�X�X�X�X��!��@�@�@�@�@���XV V V V V V�t,+++++++pg������8� Money is basically any commodity that is generally accepted in the exchange of goods and services, and when any of the above types of inflation occurs, money begins to lose some of its functions, and I shall be discussing how this happens in my following essay. Discuss today’s economic concepts: functions of money, characteristics of money, currency, and circulation of money. Last year, you sold your game system to your friend Jimmy for $125 in cash. Public � 22 0 obj � 15 0 obj �z@� �0& endobj � � endobj “Money is a matter of functions four - a medium, a measure, a standard, a store.” Thus, money is a medium of exchange, a measure of value, a store of value, and a standard of deferred payments. <> � Right from the beginning, money has been performing an important function as medium of exchange in the society. endstream <> ,++++++p:������8� �z@� �0& %PDF-1.5 %���� For example, if the baker who supplied the green-grocer […] “Money can be defined as anything that is generally acceptable as a medium of exchange and at the … Functions of Money In this story, the dollar that Matt found was used for many things. endstream �\ |�" 4. of money to reduce these costs. Functions of Money: In general terms, the main function of money in an economic system is “to facilitate the exchange of goods and services and help in carrying out trade smoothly.” Its basic characteristic is general acceptability. Rewards of factors of production in the form of wages, rent, interest and profit are determined and paid in terms of money. Commodity versus Fiat Money Money has taken a wide variety of forms in different cultures. (i) Helpful in making decisions: goods and services are exchanged for money. /Length 672 >> Medium of Exchange The primary function of money is that it acts as a medium of exchange. 9 0 obj �J{*օ������� ����9��� t� � x�3R��2�35W(�*T0P�R0T(�Y@��� <> ��ebbbbbN���������C`Y�X�X�X�X�X�X�;+��@�@�@�@�@���XV V V V V V�t,+++++++++++++++++++��\����kMbY��ךIJ��:����Pb�� Money is paid by the buyer who buys the money does. �z@� �0& ADVERTISEMENTS: The following points highlight the top six functions of money. x�3R��2�35W(�*T0P�R0T(�Y@��� � (da?ŀ)eO�PI�qt���tN��������������Z�����?�˴|��'�v�S�'A�H�M�l��L��>z�?���[�@��X3M�G%;փ�r�c�D�ZθH�ΎÒRzQg�bJ/�������{7�7�7n< � �������C2� Structure of Financial Markets Debt and Equity Markets Primary and Secondary Markets Exchanges and Over-the-Counter Markets Money and Capital Markets 3. �\ |�% <> As stated above, money primarily functions as a medium of exchange. B. 3 0 obj endobj 1. endobj �z@� �0&�2�Գ��ɹ endstream �z@� �0&�2�Գ��ɹ stream Medium of exchange: Money can be used for buying and selling goods and services. Let us take a look at the three main functions of money. .� 2019-02-21T10:28-05:00 stream They are given below. Money as a store of value Does not deteriorate and stores value 16. �����c����� k�� The functions of money can be known from its definition. 4 0 obj It transfers value. function of money exhibited here? Money performs five important functions :-Medium of exchange: Money acts as a medium of exchange as it's generally accepted. Our entire economy and society depend on money to function smoothly. stream Function # 1. Another function of money is that it is used as a measuring tool for goods and services. 24 0 obj 1. x��Yێ�6}_`�A���M�� @�� E7M��S�E�z��Vj�ү�)ʢ,z�-�x%q8s8. %PDF-1.4 � Functions of Money The earliest forms of money arose spontaneously in barter economies when experienced traders identified certain commodities that were so widely desired for actual use in the society that they could reasonably count on their acceptability as payment in almost any trade. Importance of a developed money market and its various functions are discussed below: 1. Financing Trade: Money Market plays crucial role in financing both internal as well as international trade. 10 0 obj (�D�Vy�_\\|��u�ٔ�777/nP>y~~~yy���v��ޖ#\]]�"�>"l����+�|���+5�����뾌Eﮫ.����>�YE�}D�����g�߾}+���E?~�hpv�=��$®ʨ�����.e�,�������ot����4}9}3\~]>.�����D�U����n_��}ؤR��q�F����"�r��g���������'z���+I������߿�����Y���������ׯ_�����������ߖ;��Z/}P1vRF�2��lʨUy�2v��3�LJg�'�_L���7���Ϸ��*�/=�7�V�� They heat the cabin and cook their food with wood; a nearby stream and well furnish water. 1] Money … � be most importantly a function of the interest rate, income, and wealth in the economy. INTRODUCTION TO MONEY: ORIGIN, HISTORY AND FUNCTIONS Key Concepts Barter, the purpose of money, early and current forms of money Summary This lesson introduces students to types of money (cash, coin) and the purposes of money. �z@� �0& can of diced tomatoes for $2.55. .� Students are given the descriptions of three major functions of money (Medium of exchange, Store of value, Unit of account). endstream x�3R��2�35W(�*T0P�R0T(�Y@��� stream � Functions of Money - Free download as Powerpoint Presentation (.ppt), PDF File (.pdf), Text File (.txt) or view presentation slides online. x�3R��2�35W(�*T0P�R0T(�Y@��� For, “How does money separate the … Knowing the value or price of a good, in terms of money, enables both the supplier and the purchaser of the good to make decisions about how much of the good to supply and how much of the good to purchase. � 19 0 obj �����c����� ke� You see, a measuring unit like kilometer is used in measuring distance in order that we can compare the distance from one place to another. 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