Functions of money:

 
1. Means of exchange 
  

2. Store of value


3. Unit of account 


4. Legal Tender

Role of money is affected & influenced by a number of factors:

 
Briefly explain how each the following characteristics may influence the role of money for an individual: (the hyperlinks provide some pointers if you’re stuck)

o personal attitudes towards risk and reward, borrowing, spending and saving

o life stages (childhood, adolescence, young adult, middle age, old age), key features of each stage, financial needs and implications at each stage

o culture, including religious and ethical beliefs

life events can vary the personal life cycle from individual to individual

external influences/trends and the financial-related effects

o interest rates, cost of borrowing versus reward of saving

Level 2

Create a Cornell Note based on the tasks above and answer the following questions

  1. State 2 functions of money.
  2. Explain what is meant by ‘Means of Exchange’

Level 3 

A. Complete the activities highlighted below, ensure you have notes preferably taken using the Cornell Method.

B. Create a Flash Card on this topic.