XECO 212 Money - when broken down to smaller units The...

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(1) Title: Money Name: Jordan Miller Course: XECO 212 Due Date: Friday, August 27, 2010 Instructor: Eugene Kaufman (2)
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As common knowledge suggests, money is any currency that can be used to obtain goods, services, or repayment of debt. Money has three main functions. These functions are to act as a unit of account, a medium of exchange, or a store of value. Sometimes money can even act as a standard of deferred payment. Money used as a medium of exchange, which is the exchange of goods or services for money, it enables the purchaser to avoid the bartering (negotiation) phase that may sometimes be present. Bartering can, at times, be a very inefficient waste of time and resources. Money used as a medium of exchange can eliminate the bartering process. The standard numerical unit of measure for goods, services, or other types of transactions is called the unit of account. A unit of account refers to the unit of money being used and its value
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Unformatted text preview: when broken down to smaller units. The monetary amount must remain the same in value. Money that is reliably stored, saved, and retrieved is known as money of a store value. Money of a store value must be able to be used as a medium of exchange when it is retrieved. The value of the money retrieved must also remain stable. Money as a standard of deferred payment is also a function of money. A standard of deferred payment is typically a way of settling ones debt. To defer a payment usually means that the payment of a debt is not usually due immediately, but rather some set time in the future. Using the deferred payment method allows for the purchaser of a good or service to receive the good ro service before the entire debt is paid. Sometimes this may require a particular percentage to be paid before rendering services or items....
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This note was uploaded on 02/11/2011 for the course XECO 212 taught by Professor Cohen during the Fall '10 term at University of Phoenix.

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XECO 212 Money - when broken down to smaller units The...

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