role and functions of money***
- Created by: kate.kjh
- Created on: 21-06-18 11:28
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- functions and role of money
- functions of money
- legal tender
- It is legally recognised as a main via of exchange
- unit of account
- Allows goods to have a value so that the exchange is always fair and equal between turns
- means of exchange
- Allows fair trading of goods
- store value
- Keeps constant value so allows for future use
- legal tender
- role of money
- Life Events
- Things that happen during your life will effect how you view money spending and saving
- Life events can be under the persons control or not
- Culture
- Factors such as ethical beliefs, religion or tradition may affect the use of money
- Life Stages
- Different stages in life will affect the way the person views money as children are financial supported by children
- Intrest Rates
- If interest rates are low then people will be more willing to borrow money or spend credit
- When interest rates are high people are more likely to want to save there money
- External Influences
- These directly affect the ability to spend or save money
- Decisions by the government will affect the amount of tax people pay or the amount people receive in benefits
- Factors outside out control
- Personal Attitudes
- An individuals attitude may vary towards risk and safety and saving and borrowing
- EXAMPLE - depends on if you were brought up taught to save money or not
- Life Events
- functions of money
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