What are different money functions?



To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.

What are the 4 functions of money explain each function?

The four main functions of money include: acting as a standard of deferred payment, being used as a store of value, acting as a medium of exchange, and being used as a unit of account.

What are 6 money functions?

Top 6 Functions of Money –Discussed

  • Function # 1. A Medium of Exchange: …
  • Function # 2. A Measure of Value: …
  • Function # 3. A Store of Value (Purchasing Power): …
  • Function # 4. The Basis of Credit: …
  • Function # 5. A Unit of Account: …
  • Function # 6. A Standard of Postponed Payment:





Who explain the 3 function of money?

What does money actually do? Economists usually subdivide its functions into three categories: A medium of exchange, a store of value, and a unit of value. Created by Grant Sanderson.

What are the 5 types of money?

There are 5 different types of money in the world: Fiat, commodity, representative, fiduciary, and commercial bank money. They also all have three functions in common; they serve as a medium of exchange, as a store of value, and as a unit of account.

What are the 4 types of money?

The 4 different types of money as classified by the economists are commercial money, fiduciary money, fiat money, commodity money. Money whose value comes from a commodity of which it is made is known as commodity money.

What are 5 uses of money?





Summary. There are only really 5 things we can do with money. We can use it to live, we can give it, we can repay debt, we can pay taxes, or we can save/grow it. It’s important to know how your money is being allocated among these categories because this will show us our priorities.

What are the 8 characteristics of money?

Top 8 Qualities of an Ideal Money Material

  • General Acceptability:
  • Portability:
  • Indestructibility or Durability:
  • Homogeneity:
  • Divisibility:
  • Malleability:
  • Cognizability:
  • Stability of Value:


What is the most important function of money?

Money’s most important function is as a medium of exchange to facilitate transactions. Without money, all transactions would have to be conducted by barter, which involves direct exchange of one good or service for another.

What are the 7 characteristics of money?

The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.



Let’s run down our list of characteristics to see how they stack up.



  • Durability. …
  • Portability. …
  • Divisibility. …
  • Uniformity. …
  • Limited supply. …
  • Acceptability.


What are the types of money?

The various types of money are:

  • Commodity Money.
  • Fiat Money.
  • Fiduciary Money.
  • Commercial Bank Money.
  • Metallic Money.
  • Paper Money.
  • Reserve Money.


What is the function of money PDF?

“Money is a matter of functions four – a medium, a measure, a standard, a store.” Thus, money is a medium of exchange, a measure of value, a store of value, and a standard of deferred payments. 1. Medium of exchange: The most important function of money is that it acts as a medium of exchange.

What are the 10 types of money?

There are many Forms or Types of Money and in this article, we will do justice to them for clarification:



  • Coins. Coins are some kind of precious metal made of silver, which has a reasonable amount of metallic content. …
  • Commodity money. …
  • Bank Notes. …
  • Partial money. …
  • Legal tender. …
  • Token Money. …
  • Deposit Money. …
  • Flat money.

What are the 8 types of money?

Modern Forms of Money:

  • Currency: The currency is a country’s unit of exchange issued by their government or central bank whose value is the basis for trade. …
  • Deposit Money or Bank Money: …
  • Legal Tender Money (Force Tender): …
  • Near Money: …
  • Electronic Money: …
  • Fiat Money:


What are the 3 categories of money?

Economists differentiate among three different types of money: commodity money, fiat money, and bank money.

What are the four main functions of money describe each function quizlet?

Terms in this set (4)

  • Medium of exchange. • enables the buying and selling of products. • makes exchange easier – limits the need for barter.
  • Measure of value. • enables a value to be put on something. …
  • Store of value. • a convenient way of storing wealth. …
  • Method of deferred payment. • enables borrowing and lending.




What are the 4 Features of money?

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  • Acceptable across board. One of the characteristics of money is that it must be accepted by most people in exchange for goods and services. …
  • It must be portable. …
  • It must be divisible. …
  • Money must be durable. …
  • It must look the same. …
  • It must be easy to identify.


What are the functions of money and explain it class 8?

Primary or main functions:



i) Medium of exchange or means of payment – Money is used to buy goods and services. ii) Measure of value – All the values are expressed in terms of money. Thus, it is easier to determine the rate of exchange between various type of goods and services.

What are the 7 functions of money?

Answer 6. Functions of Money:

  • Medium of Exchange: The most important function of money is to serve as a medium of exchange or as a means of payment. …
  • Measure of Value: …
  • Standard of Deferred Payments: …
  • Store of Value: …
  • Transfer of Value: …
  • Distribution of National Income: …
  • Maximisation of Satisfaction: …
  • Basis of Credit System:

What is the function of money PDF?

“Money is a matter of functions four – a medium, a measure, a standard, a store.” Thus, money is a medium of exchange, a measure of value, a store of value, and a standard of deferred payments. 1. Medium of exchange: The most important function of money is that it acts as a medium of exchange.