E.6.1

//Guiding Question:// What is the function and role of money in the United States and how does it relate to banks as well as financial institutions?


 * E.6.1:** **Explain the basic functions of money (e.g., medium of exchange, store of value, unit of account).**


 * Money is anything that people commonly accept in exchange for goods or services.

The functions of money are the following:
 * Medium of Exchange: Any item that sellers will accept in payment for goods or services. Money is helpful because buyers know sellers will accept money in payment for products or services.
 * Store of Value: One function of money allowing it to be saved for later use, providing the money is nonperishable and keeps its value over time. (Miller 1991)
 * Unit of Account: Unit of account is used for ranking of goods & services with a single standard. Its function is that is allows for goods & services to be comparable. In economics, unit of account is used for statistical purposes. (Unknown, 2007)

Bibliography: Unknown, (2007, April 24). Unit of Account. Retrieved May 9, 2007, from Wikipedia Web site: http://en.wikipedia.org/wiki/Unit_of_account

Miller, R (1991). //Economics Today and Tomorrow, 3rd ed.//. Mission Hills, CA: Glencoe/McGraw-Hill.

O'Connor, D (1988). //Economics: Free Enterprise in Action//. Orlando, FL: Harcourt Brace Jovanovich.