pwede bang tulungan mo akong maexplain ng maayos ito sa tagalog

Functions of money

1. As a medium of exchange Assume a significant role in the advent of the market economy marked by specialization, interdependence, and trade.

2. As a unit of account Serves a common yardstick or denominator by which we judge and compare the values of goods and services available in society.

3. As a store of value Means by which values can be saved or kept for the timely exchange for goods and services when the need arises.

The Demand for Money

1. Transaction Demand People may want to keep is for them to be able to carry out ordinary day to day transactions

2. Precautionary Demand People demand money for security against unforeseen expenditures and unexpected loss of income

3. Speculative Demand People convert their cash balances into high interest yielding alternatives such as bonds and treasury bills when interest rates are high