role and functions of money***

  • Created by: kate.kjh
  • Created on: 21-06-18 11:28
View mindmap
  • 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
    • 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

Comments

sanielagashi

Report

this helped me so muchh! thankyouuuu

Similar Business resources:

See all Business resources »See all A.1 - role and functions of money resources »