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What are the basic functions of money in the economy, and how do these functions help facilitate transactions and economic activity?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter25: Money, Banking, And The Federal Reserve System

Section: Chapter Questions

Problem 3P

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What are the basic functions of money in the
economy, and how do these functions help
facilitate transactions and economic
activity?

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Step 1: Problem Definition

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Step 2: Medium of Exchange

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Step 3: Unit of Account

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Step 4: Store of Value

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Step 5: Standard of Deferred Payment

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