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the four functions are:
A store of value,
A medium of exchange,
A unit of account,
A standard of deferred payment.

2006-11-09 12:09:46 · 1 answers · asked by cassiebaby17 2 in Social Science Economics

1 answers

A store of value - diminishes your ability to store – what you save in the bank is now worth less

A medium of exchange – skews the exchange, makes it difficult to know exchange value as money value is a moving target

A unit of account – skews the unit – makes it a moving standard, 1 unit today is 0.9 unit tomorrow, money value is a moving target

A standard of deferred payment – diminishes your ability, a deferred payment is now worth less

2006-11-09 16:08:46 · answer #1 · answered by JuanB 7 · 0 0

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