Money and Its FunctionsMoney has fo

Money and Its Functions

Money has four functions: a medium ofexchange or means of paymen a store of value, a unit of account and a standard of deferred payment. Wien used as a medium ofexchange, money is considered to be distin-guished from other assets.
Money as the medium of exchange is believed to be used in one half of almost all exchange. Workers ex-change labour for money, people buy or sell goods in exchange for money as well.
People do not accept money to consume it directly but because it can subsequently be used to buy things, they wish to consume. To see the advan tages of a medium of exchange, imagine a barter economy, that is, an econ omy having no medium of exchange. Goods are traded directly or swapped for other goods. The seller and the buyer each must want something the other has to offer. Trading is very expensive. People spend a lot of time and effort finding others with whom they can make swaps. Nowadays, there exist actually no purely barter economies, but economies nearer to or farther from the barter type. The closer is the economy to the barter type, the more waste- ful it is.
Serving as a medium of exchange is presumed to have for centuries been an essential function of money.
The unit of account is the unit in which prices are quoted’ and accounts are kept. In Britain, for instance, prices are quoted in pounds sterling; in France, in French francs. It is usually convenient to use the same unit to measure the medium of exchange as well as to quote prices and keep accounts in. However, there may be exceptions. During the rapid German in- flation of 1922-23 when prices in marks were changing very quickly, German shopkeepers found it more convenient to use US dollars as the unit of account. Pric-es were quoted in dollars though payment was made in marks. The same goes for2 Russia and other post-communist economies who used the US dollar as a unit of account, keeping their national currencies as means
actual payment. The higher is the inflation rate, the greater is the probabilitY of introducing a temporary unit of account alongside the existing units for measuring medium of exchange.
Money is a store ofvalue, for it can be used to make purchases in future. For money to be accepted in ex-change, it has to be a store of value. Unless suitable for buying goods ‘ith tomorrow, money will not be accepted as pay- ments for the goods supplied today. But money is neither the only nor neces sarily the best store ofvalue. Houses, stamp collections, and ines_beariflg bank accounts all serve as stores of value.
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finally, money serves as a standard of deferred payment or a unit of account over time. When money is borrowed, the amount to be repaid next year is measured in units of national currency, pounds of sterling for the United jngdom, for example. Although convenient, this is not an essential function 0fmofleY. UK citizens can get bank loans specifying in dollars the amount that must be repaid next year.
Thus, the key feature of money is its use as a medium of exchange. For money to be used successfully as a means of exchange. it must be a store of value as well. And it is usually, though not always, convenient to make money the unit of account and standard of deferred payment.

Результаты (русский) 1:

Money and Its FunctionsMoney has four functions: a medium ofexchange or means of paymen a store of value, a unit of account and a standard of deferred payment. Wien used as a medium ofexchange, money is considered to be distin-guished from other assets.Money as the medium of exchange is believed to be used in one half of almost all exchange. Workers ex-change labour for money, people buy or sell goods in exchange for money as well.People do not accept money to consume it directly but because it can subsequently be used to buy things, they wish to consume. To see the advan tages of a medium of exchange, imagine a barter economy, that is, an econ omy having no medium of exchange. Goods are traded directly or swapped for other goods. The seller and the buyer each must want something the other has to offer. Trading is very expensive. People spend a lot of time and effort finding others with whom they can make swaps. Nowadays, there exist actually no purely barter economies, but economies nearer to or farther from the barter type. The closer is the economy to the barter type, the more waste- ful it is.Serving as a medium of exchange is presumed to have for centuries been an essential function of money.The unit of account is the unit in which prices are quoted’ and accounts are kept. In Britain, for instance, prices are quoted in pounds sterling; in France, in French francs. It is usually convenient to use the same unit to measure the medium of exchange as well as to quote prices and keep accounts in. However, there may be exceptions. During the rapid German in- flation of 1922-23 when prices in marks were changing very quickly, German shopkeepers found it more convenient to use US dollars as the unit of account. Pric-es were quoted in dollars though payment was made in marks. The same goes for2 Russia and other post-communist economies who used the US dollar as a unit of account, keeping their national currencies as meansactual payment. The higher is the inflation rate, the greater is the probabilitY of introducing a temporary unit of account alongside the existing units for measuring medium of exchange.Money is a store ofvalue, for it can be used to make purchases in future. For money to be accepted in ex-change, it has to be a store of value. Unless suitable for buying goods ‘ith tomorrow, money will not be accepted as pay- ments for the goods supplied today. But money is neither the only nor neces sarily the best store ofvalue. Houses, stamp collections, and ines_beariflg bank accounts all serve as stores of value.128и наконец деньги служит в качестве стандарта отложенного платежа или единица счета с течением времени. Когда заемные деньги, сумма погашаются в следующем году измеряется в единицах национальной валюты, фунтов стерлингов для Организации jngdom, например. Хотя удобно, это не является важнейшей функцией 0fmofleY. Граждане Великобритании могут получить банковские кредиты, указав в долларах суммы, которые должны быть погашены в следующем году.Таким образом ключевой особенностью денег является его использование в качестве средства обмена. За деньги, чтобы успешно использовать в качестве средства обмена. необходимо хранить ценности также. И это, как правило, хотя и не всегда удобно делать деньги единицы счета и стандарт отложенного платежа.