Explain any two functions of money. - Vidyadip

Question

Explain any two functions of money.

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Answer

Functions of money are:

Medium of exchange : Buying and selling is done in exchange for money. It has facilitated trade.
Store of value: Money acts as a store of value. It is acceptable at any point of time. It is not perishable so it can be stored for future use.
Unit of account: The value of all goods and services can be expressed in monetary units. This facilitates exchange.
Standard of deferred payment: It also serves as a standard of payment contracted to be made at some future date.

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