5 Questions
Money is anything that is generally accepted in payment for goods and services for the retirement of ______
debt
Money may also be used to transfer purchasing power to the ______
future
The ease with which an asset may be converted into money is its ______
liquidity
The Bangko Sentral ng Pilipinas (BSP) is the only authorized government entity to print ______
money
Stocks, bond, savings accounts, real estate, gold and collectible are some of the various assets that may be used to store ______
value
Study Notes
The Role of Money
- Money is anything that is generally accepted in payment for goods and services or for the retirement of debt.
- Different items, such as shells, stones, and metals, have served as money in the past.
- Money serves three functions: medium of exchange, store of value, and unit of account.
Functions of Money
- Medium of exchange: money is used to pay for goods and services.
- Store of value: money can be saved and stored for future use.
- Unit of account: money serves as a standard unit of measurement for the value of goods and services.
Alternative Stores of Value
- Assets such as stocks, bonds, savings accounts, real estate, gold, and collectibles can also be used to store value.
- These assets cannot be used directly to buy goods and services; they must be converted into money first.
- The ease with which an asset can be converted into money is its liquidity.
The Bangko Sentral ng Pilipinas (BSP)
- The BSP is the only authorized government entity to print money in the Philippines.
Test your knowledge of the role of financial markets and financial intermediaries in the CAPITAL module 1 with this quiz. Learn about the significance of money and its role in payment for goods and services, debt retirement, and transferring purchasing power to the future.
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