Business BTEC Unit 3 - Aim A (Part 1) [Graded A

Main functions of money - Answers-1. unit of account- (you exchange money for an equivalent value of goods) 2. means of exchange- (buy, sell or trade) 3. store of value- (it can be stored e.g. banks) 4. legal tender- (national currency of a country an official method of payment) Factors influencing your view on money - Answers-1. personal attitudes- towards risk and reward 2. life stages- your financial priories and needs 3. culture- religious belief and ethical principles 4. life events- (e.g. moving houses or made redundant) 5. external factors- state of economy or availability of jobs 6. interest rates Benefits of planning expenditure - Answers-1. good credit rating-will be able to borrow money 2. not spending money on unnecessary goods, means that you are able to save money