TOPIC 12 | MONEY

Conventionally and traditionally defined more in terms of the functions it performs rather than its form.

• MONEY

• TAX

• REVENUE

• ASSETS

Refers to all the things that are generally acceptable as a means of payment for goods and services and debts

Three (3) functions of money

• Medium of echange

• Unit of account

• Store of values

• Tax ecpenditure

Medium of echange

• MONEY

• TAXES

• REVENUE

• AUTARKY

Money as an accepted means of payment for goods and services

• Medium of exchange

• Unit of account

• Store of value

• Mode of transfer

Money as an item in which the values or prices of goods and services are expressed or quoted

• Medium of exchange

• Unit of account

• Store of value

• Mode of transfer

The ability of money to maintain its value over time.

• Medium of exchange

• Unit of account

• Store of value

• Mode of transfer

No trade happens.

• Autarky

• Barter system

• Commodity money

• Fiat Money

Families or tribal groups produce goods and services for their consumption only.

• Autarky

• Barter system

• Commodity money

• Fiat Money

In this system, money is not used because there is simply no need for it.

• Autarky

• Barter system

• Commodity money

• Fiat Money