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AssignmentLong Text

Money

Question 8 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

What are the three main purposes of money? In your answer, be sure to explain why each purpose helps us to eliminate the need for bartering.

Answer

Answer:

Money is a medium of exchange, a unit of account, and a store of value. As a medium of exchange, it lets people buy and sell without finding someone who wants exactly what they offer, as barter requires. As a unit of account, it gives goods and services common prices so people can compare values easily. As a store of value, it lets people save purchasing power for the future instead of having to trade goods right away.

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