Explain in short the functions of money?
Answer:
(A) Medium of exchange: Money can be employed to make payments for all transactions of services and goods.
(B) Measure of value: Money works as a general denomination in which the values of all services and goods are expressed.
(C) Store of value: Wealth can be suitably stored in the form of money without loss of value.
(D) Standard of deferred payments: Money simplifies the borrowing and lending process.