What are the three main characteristics and uses of money

Answer 1

The three main characteristics of money are:

1. Medium of exchange: Money serves as a widely accepted means of payment for goods and services, making it easier for individuals and businesses to conduct transactions.

2. Store of value: Money can be saved, stored, and used for future purchases. It retains its value over time, making it a reliable way to hold and preserve wealth.

3. Unit of account: Money provides a standard unit of measurement for comparing the value of different goods and services. It allows for easy pricing and tracking of economic transactions.

The primary uses of money include facilitating transactions, storing value, and acting as a unit of account in an economy. Money plays a crucial role in enabling efficient trade and economic activities by providing a universally accepted medium of exchange. It also helps individuals and businesses save and invest for the future, as well as assess the relative value of goods and services.