Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Functions of money
Document related concepts
no text concepts found
Transcript
Edexcel International AS Economics UNIT 1 – Markets in Action Functions of Money UNIT 1 – Markets in Action | Section 1 – The nature of economics The history of money • Journey to plastic: A history of money in five objects • http://www.bbc.com/news/business36056401 • Examples of money from 9000 B.C. In China, Africa and India UNIT 1 – Markets in Action | Section 1 – The nature of economics The barter economy • What is bartering? • Exchange one good or service for another • For example – a pig for ten chickens • But you need to find some who wants what you have and vice versa – double coincidence of wants UNIT 1 – Markets in Action | Section 1 – The nature of economics Functions of money Medium of exchange • must be acceptable to the buyer and the seller. Store of value • need to be able to use the money in future transactions. UNIT 1 – Markets in Action | Section 1 – The nature of economics Functions of money Unit of account • Allow the value of goods and services to be measured and compared. Standard of deferred payment • Payment that is made in the future – the monetary value is agreed before the payment is made. UNIT 1 – Markets in Action | Section 1 – The nature of economics
