Question

Match the given terms to the appropriate statement relating to the various functions of money. Each term is used only once. 1. Money provides a way of measuring a good for value in standardized terms. 2. Money permits us to make purchases today and enables us to pay off the purchases at some future point in time. 3. Money keeps its overall purchasing power. 4. Money is used to complete the transaction between the buyer and seller.a) Unit of Account b) Medium of Exchange c) Store of Value d) Standard of Deferred Payment

Answer 1

1. Unit of Account: Money provides a way of measuring a good for value in standardized terms.

2. Standard of Deferred Payment: Money permits us to make purchases today and enables us to pay off the purchases at some future point in time.

3. Store of Value: Money keeps its overall purchasing power.

4. Medium of Exchange: Money is used to complete the transaction between the buyer and seller.

Step-by-step explanation:

Money is a liquid asset or legal tender which is generally accepted and recognized in a socio-economic community or country as a medium of payment for goods and services and repayment of debts, such as loans. The functions of money are;

1. It provides a way of measuring a good for value in standardized terms.

2. It allows individuals or persons make purchases today and enables them to pay off the purchases at a latter date.

3. Money keeps its overall purchasing power.

4. It is generally used to complete the transaction between the buyer and seller.