What Does It Mean When We Say That Money Functions

question 188

Essay

What does it mean when we say that money functions as a medium of exchange, as a store of value, and as a unit of account?

---

Definitions:

Job Turnover

The rate at which employees leave a workforce and are replaced by new employees.

Nominal Wage

The amount of money received by a worker per unit of time (hour, day, etc.); money wage.

Real Wage

The amount of goods and services a worker can purchase with his or her nominal wage; the purchasing power of the nominal wage.

Agency Shops

A workplace agreement where employees, whether or not they are union members, must pay union fees for the bargaining services the union provides.