Principles of Macroeconomics / Unit 11 MAC 1003 short lesson, about 20 seconds
The Functions of Money
Captions available
The idea
Money does four jobs. It is a medium of exchange, accepted in payment; a store of value between earning and spending; a unit of account; and a standard of deferred payment.
In practice
The fourth follows from the second: money can denominate a debt because it holds value.
Where people slip
Some texts list three, folding deferred payment into store of value.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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