Functions and Role of Money
- Created by: DeniseAlex1910
- Created on: 09-01-18 23:26
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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
- Store Value
- Keeps a constant value so allows for future use
- Legal Tender
- Role of Money
- Interest Rates
- The change on interest rates may affect how you think about borrowing money or how much you may want to save for the future
- Personal Attitudes
- Some people take more risks and so they are risk takers and save less and spend more while others are risk averse and prefer saving
- Life Stages
- As you grow your financial needs change as well as how you spend your money and how you save it
- Culture
- Factors such as ethical beliefs religion or tradition may affect how you use money
- Life Events
- Things that happen during your life will effect how you view money spending and saving
- External Influeneces
- Factors such as your wage or the state of your country's economy or even prices of goods and services can impact
- Interest Rates
- Functions of Money
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