Making payments is one of the functions of finance, but they are asking me to explain how does finance performs in making payments? And to discuss an alternative institutional arrangement that would also perform the function (such as the bitcoin)

Thank you.

This is your homework... and we don't do your assignments so you won't have to.
However give your your answer and your explanation, we will happily tell you if you went wrong.

I do not want you to do my assignment just an explanation of how finance affect the making of payment or an example so I can understand it and do it by my own.

"explain how does finance performs in making payments". The question doesn't make much sense. You can make payments many ways, cash, credit cards, bank drafts or other accepted means, perhaps bitcoins. You can have discounts for quick pay or penalties for late payments.

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Originally Posted by ma0641

"explain how does finance performs in making payments". The question doesn't make much sense. You can make payments many ways, cash, credit cards, bank drafts or other accepted means, perhaps bitcoins. You can have discounts for quick pay or penalties for late payments.

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This is the entire question: What are the functions of finance? Focusing on one function (of your choice) explain how finance performs the function and briefly discuss an alternative institutional arrangement that would also perform the function.

I already know the functions of finance which are:

1. Making payments to facilitate the exchange of assets, goods and services;

1. Providing resources to fund large-scale projects or enterprises;

1. Transferring resources from surplus agents (e.g. savers) to deficit agents (e.g. borrowers);

1. Managing risk;

1. Providing price information required for the coordination of decentralised decision-making;

1. Creating incentives to perform well, i.e. in the stakeholders’ interests.

So I thought the easiest want to choose was the first one, but I do not know how to answer the part of "explain how finance performs the function" because I do not understand it :,(

Rephrase your question; explain how finance helps you PAY for stuff. Then you can think of the many ways besides carrying cash to a location that you can make a purchase, and what it takes to qualify for those ways.