In: Economics
What is the function of money?
Discuss how money contributes to economic growth and\or
development?
If there is no money will society find a way to exchange goods and
services without it?
Explain.
1.
Money primarily serves three important functions:
Thus, the above three discussed are the three most important functions of money.
2.
Money contributes to economic growth and development by allowing exchange of goods and services, not within the country but also across countries. This helps countries engage in international trade and grow and develop through additional production and consumption.
3.
Yes, in case of absence of money, society will find a way to exchange goods and services. This can involve either assuming a good or a commodity as money or by engaging in barter exchange.