00:01
Hello, so too i'm going to answer your question about the four functions of money.
00:06
So first i listed the first one is that is a medium of exchange, which means that everywhere you go, it's going to be accepted.
00:16
The second one is that is sort of value.
00:19
So basically you can carry it and it will be always carry the value or it will contain the value along the time.
00:28
It's a unit of account, so it will always be divisible enough.
00:34
To make transactions easily.
00:36
And the final one will be that is acceptable across the time.
00:39
That means that basically you can buy something now and pay it with the same currency or the same money in the future and it will still be valid.
00:50
So during the story, there have been moments where the money only have one of the functions and it still was considered as a currency.
00:57
So for example, gold was once the currency, but it was hard to consider it as a unit of account because it was not easily divisible.
01:08
So people start coding the gold, or for example, the coins, they were cuted, and that's why they were being clipped, and they were not a unit of account, because the one coin was not divisible enough...