Question

what is the functioning of money​

Answer 1

Medium of exchange:

money allows goods and services to be traded without the need for a barter system. Barter systems rely on there being a double coincidence of wants between the two people involved in an exchange

Store of value:

this can refer to any asset whose “value” can be used now or used in the future i.e. its value can be retrieved at a later date. This means that people can save now to fund spending at a later date.

Unit of account:

this refers to anything that allows the value of something to be expressed in an understandable way, and in a way that allows the value of items to be compared.

Standard of deferred payment:

this refers to the expressing of the value of a debt i.e. if people borrow today, then they can pay back their loan in the future in a way that is acceptable to the person who made the loan.

Answer 2

Answer:

Money has three primary functions. It is a medium of exchange, a unit of account, and a store of value: Medium of Exchange: When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange.