These are widely recognized and accepted functions of money, and they have played an important

role in the development and functioning of modern economies.

Medium of exchange: The use of money as a medium of exchange simplifies transactions and makes
it easier for people to buy and sell goods and services. Without money, people would have to rely on
barter, which can be complicated and time-consuming.

Unit of account: The use of money as a standard measure of value allows for easier comparison of
the value of goods and services. It also allows for the calculation of profits and losses, and enables
businesses to make better decisions about pricing, production, and investment.

Store of value: Money can be saved and stored for future use, providing a convenient and reliable
way for people to accumulate wealth. This function is important for individuals, as well as for
businesses and governments that need to finance long-term projects.

Standard of deferred payment: Money can be used to settle debts in the future, providing a way for
people to make transactions that extend beyond the immediate present. This function allows for
credit and borrowing, which can be important for economic growth and development.

Overall, the functions of money have been essential in enabling economies to function efficiently
and effectively. However, the effectiveness of money in performing these functions is influenced by
factors such as inflation, interest rates, and economic stability, which can affect its value and use