What is the role of money in a market economy?

Economics Market Economy Questions



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What is the role of money in a market economy?

The role of money in a market economy is to serve as a medium of exchange, a unit of account, and a store of value. It facilitates the exchange of goods and services by providing a common medium for transactions. Money also allows for the comparison of the value of different goods and services, as it serves as a unit of account. Additionally, money serves as a store of value, allowing individuals to save and accumulate wealth over time.