State and explain the different functions of money
Answers
Money is often defined in terms of three functions or services that it provides. Money serve as a medium of exchange, store of value and also as a unit of account. Money effectively eliminates the problem of double coincidence of wants as it serves as a medium of exchange. Transactions through money during exchange of goods, benefits both the buyers and sellers. In order to be a medium of exchange, money must hold a value over time i.e) it must be a store of value. Further more money is an easily transported store of value with number of convenient denominations. It also provides a common measure of value of goods and services being exchanged. Knowing the value or price of money of the goods in terms of money, enables both the supplier and buyer to make proper decisions.. Hope this answer will help you.