Breaking Kenya News Forum

Topics

Medium of Exchnage

Money serves theree major functions i.e.  medium of exchange i.e. people settle on something that will serve as a medium of exchange they select something to be money , serves as a unit of account i.e. serves as a unit of account, which is a consistent means of measuring the value of things and as a store of value i.e.  acts as a store of value, it can be used as a standard for future payments but it is not risk free. Money can either be Commodity money is money that has value apart from its use as money, Checkable deposits- which are balances in checking accounts, and traveler’s checks are other forms of money that have no intrinsic value etc. How does money depreciate which makes life hard ?

Previous Article

Leave a Reply

Your email address will not be published. Required fields are marked *.

You may use these <abbr title="HyperText Markup Language">HTML</abbr> tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>