FUNCTIONS OF MONEY
Medium of Exchange:
FUNCTIONS OF MONEY
We use it to buy goods and services. It serves commercial transactions and facilitates investment operations without the costs and difficulties of exchanging goods or services.
FUNCTIONS OF MONEY
A Store of Value (Purchasing Power):
It transfers purchasing power from the present to the future. It is about accepting money (and gold) because of the savings it provides for its future use..
FUNCTIONS OF MONEY
A Measure of Value:
Expresses the value and prices of goods and services. The value of all products is measured in monetary terms and this makes it easier to compare the values of the different products.
A key issue that concerns those involved in the IT and finance industry to a greater extent is whether cryptocurrencies can function as money, covering the aforementioned key functions.
Source:
- Mankiw, N.G. and Ball, L.M. (2013) Η Μακροοικονομική και το χρηματοπιστωτικό σύστημα, Worth Publishers