Answer in detail:

Describe the functions of money.

Following are the functions of money:

a. Money is used as a standard for future payment. Business nowadays works on credit cycle, where credit is money (good or service) utilized in advance with a promise of future payment. In such transactions money is the standard tool.

b. Money acts as a medium of storing an individual’s wealth, as it can easily be converted in to marketable asset such as land, jewelry etc.

c. It is freely used in exchange of goods and services, hence it’s a medium of exchange

d. It is a tool used for measurement. Money is the value of any goods and commodities. Its price is its value in monetary terms.