Running head: WEEK 4 DISCUSSION 1 Week 4 Discussion Names: Institution: WEEK 4 DISCUSSION 2 Week 4 discussion Wk 4 Discussion 1: Money and Its Functions Money is the most common medium of exchange. According to Chafuen (2018), it is both a medium of exchange and a value holder. It has a number of uses. As a value holder, money is used to store value. In this case, the value of money has been standardized through currencies. With its clearly defined value, all other commodities can be benchmarked against money to identify their value or worth. Its clearly defined value is also the reason that it functions as the principal medium of exchange as it is received in exchange for other commodities during trade. Money also serves as a unit of account and a standard of deferred payment. According to Amacher and Pate (2019), money necessitates comparison of different goods and services against one another while at the same time lending meaning to assets, losses, and profits, among other accounts. This is measured by the defined value of each currency and the standard of conversion from one currency to another. Money can be in the form of paper or commodity. While paper money is the banknotes that have been allocated an abstract value, commodity money is an asset that is allocated an intrinsic value that can be used to acquire other goods and services (Amacher & Pate, 2019). Some of the common commodity monies include gold and oil. Paper money is validly used as money based on wha ...
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