Ask Question
28 August, 10:11

What are the three roles of money in an economy

+1
Answers (1)
  1. 28 August, 10:52
    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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers