Functions of Money

There are four uses for functions of money. In this topic we will know what is the purpose of money in our life and how to use it properly.

The first function of money is we use money by barter system or trading system. Money is used to buy or get something else that we really need in our lives. This function of money is very common to us because we use money to get our needs and our wants. The second function of money is (1) Medium of exchange,(2) Standard value. This function of money is usually we used it to have goods and services that we bought or sold. The money is used as the standard of value for the exchange of something we need and it depends on the price of each goods and services. The third function of money is (3) Store of Value. This functions of money is the process of keeping money from your own good. Like money that you put in you piggy banks, you store it and when you store it, it sill have value in it. When you put away money, it will still be valuable later because it has a store of value in it. The last function of money is (4) Standard of Deferred payment. This functions of money is usually used in jeepney, because we pay for every services that is given to us. The item or service is bought on redit and paid for later in cash or by check from banks.

These are the FOUR USES FOR FUNCTIONS OF MONEY.