3. MONEY

Money is everything that serves as universally excepted medium of exchange or means of payment.

Functions of money:

Medium of exchange – enables people to exchange goods and services for other commodities

Store of value – at home money loses value because of inflation so it is better to deposit financial assets with a bank. Money can also be stored in other forms – securities (cenné papiry), shares, or bonds (dluhopisy, obligace). We can also invest in properties, lands, arts, jewelry, antiques or precious metals and stones.

Measure of value – it enables us to compare the value of various goods and services- 11 computers =1 car

Evolution of money