Money in a Modern Economy and its Impact on Prices
Explain what is used as money in a modern economy and how an increase in the quantity of money can cause prices to rise. (8)
Macroeconomic Factors and Policies
[CIE AS level November 2016]
Step ➊ : Define money.
A simple definition of money is that it is anything that is regularly used to buy goods and services. Money can take various forms.
Step ➋ : Explain what is used as money in a modern economy.
Money is generally cash in the form of coins and notes but the definition also includes bank deposits, cheques, debit cards and credit cards. To be acceptable from a day to day practical standpoint, money must also be portable and durable.
Ops... End of preview!
Already purchased Economics Study Pack subscription? Amazing! Click below