The role of money
Money has three separate but related functions:
- a medium of exchange so that resources can be exchanged
- a store of value so that we can save for the future
- a unit of account so that we can measure an outcome and compare resources.
Often, we think of money and finance as the same item. Can we say that money (and finance) is a business resource like other business resources, such as the employees and inventories?
Yes, we can.
Money is a resource that allows us to buy other resources that a business needs.