Money

CheckPoint Week 6

Money

Money comes in all shapes and sizes. In every country money comes in its own form and with its own value. However; whatever shape or value that money might hold it still performs four basic functions and I am going to talk about three of those in this writing.

The first of these is unit of account, this is “a standard numerical unit of measure of the market value of goods, services, and other transactions” (Wikipedia.org, 2011). One way that I could use this in my everyday life would be to say that I work for $9.00 an hour and a concert ticket (general admission) costs $18.00 or I would say that I would have to work 2 hours to purchase an $18.00 concert ticket.

The next function is called medium of exchange. “This function means that money is accepted throughout the economy as payment for goods and services. Buyers acquire goods by giving up money. Sellers receive money when parting with their goods” (amosweb.com, 2011). An example of this function in my everyday life would be that sometimes I have a yard sale and I will collect money for which my customers get something of value to them that I had at a discounted price.

The last function is called store of value. This is where “a money must be able to be reliably saved, stored, and retrieved-and be predictably useable as a medium of exchange when it is retrieved” (Wikipedia.org, 2011). An example of where I might use this in my everyday life is at Christmas time I will buy each of my children a gift card, so that later they can go and purchase a gift for themselves that they want instead of me getting the wrong gift.

References

* Amos Web Encylonomics, Money, October 10, 2011. Retrieved from http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=money

* Wikipedia Encyclopedia, Money, 2011. Retrieved from http://en.wikipedia.org/wiki/Money