Answer to Question #240415 in Economics for Abo

Question

Describe the functions of money in a South African economy

Answer 1

1. Measure of value. Money allows you to estimate the value of goods by setting prices.

2. Means of circulation. Money plays the role of an intermediary in the exchange process.

3. Means of payment. A money function that allows the payment time not to coincide with the payment time, that is, when goods are sold on credit.

4. Means of accumulation and savings. The ability of money to participate in the process of formation, distribution, redistribution of national income, the formation of savings of the population.

5. The function of world money. It manifests itself in the relationship between economic entities: states, legal entities, and individuals located in different countries.