What is money? What are its four financial functions?
What will be an ideal response?
Answer: Money is anything generally accepted as a means of paying for goods and services. Every country has its own system of money, or currency, except for those that opt to share a currency such as the euro. Money performs four financial functions. First, it serves as a medium of exchange, a tool for simplifying transactions between buyers and sellers. Second, it serves as a unit of accounting (a measure of value, in other words) so that buyers and sellers don't have to negotiate the relative worth of dissimilar items with every transaction. Third, money serves as a temporary store of value-a way of accumulating wealth until it is needed. Fourth, money serves as a standard of deferred payment, meaning it can be used to represent debt obligations.
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What will be an ideal response?