This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.
ScanSolve AI Answer
3.1 Two functions/roles of money are: • A medium of exchange (used to buy goods and services). • A store of value (can be saved and used later). Alternatively: • A unit of account (provides a common measure of value). • A standard of deferred payment (allows for future payments). 3.2 One advantage of electronic banking is convenience, as it allows transactions to be performed 24/7 from any location with internet access. Alternatively: • Speed, as transactions are often processed instantly. • Security, as it reduces the need to carry physical cash. • Accessibility, as banking services can be accessed remotely.