Meaning and Functions of Money — Economics STD 10 — Question

Two primary functions of money are:
(1) Medium of Exchange: Money is acceptable to all as a means of exchange. A person can sell his goods and services in exchange for money and can use this money for buying the goods and services that he needs. Thus money acts as the intermediary for exchange of goods and services.
(2) Measure of Value: Money measures the value of all goods and services. It acts as standard measure into which the values of goods and services are expressed. When the value of a commodity is expressed in terms of money, it is called price. Money also serves as a unit of account. All records are kept and maintained in terms of the monetary unit, for example, Rupee, Dollar, Pound etc.