3.1
medium of exchange in most economies tong transaction amount in cash or check.
-Used to purchase goods, services or payment of debts cough and abroad.
- time consumption exertion used to exchange goods and services called transaction costs.
=> money as a necessary means,handy allow economies operate more smoothly, encouraging specialization and division of labor society deeper and wider.
-To make good money this functionality to be achieved after a number of functions:
must created a series of easy, high uniformity to facilitate the valuation in each country.
have been widely accepted by the exchange of goods.
can be subdivided thus facilitating the exchange.
easy to transport, move.
not damaged quickly by impact of climate and weather environment.
3.2 Units of measurement or treatment Assume evaluation unit.
Monetary unit of measure is the value of goods and services before making
-exchanger expression in money of the value of goods is the price of goods.
-Is an important function of the
-currency price index formula says we need to have n items like formula when there are n number of pairs of elements: (n (n-1)) / 2
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