Functions of Money

     There are four uses or functions of money; medium of exchange, standard of value, store of value, and standard of deferred payment. It is used as a medium of exchange, money is really just a means of another end, it is the medium of exchange to get something else that we really need. (e.g. You want to buy a new cellphone then you need money to buy it and let it be yours.) Standard of value,, money gives a value to other goods and services that are bought or sold, money is used as the standard value for the exchange of something. (e.g. The new Samsung Champ cost five thousand three hundred pesos while the Samsung Corby cost six thousand pesos, it differs a lot because it's amount gave it's standard of value.) Store of value, when you put something away for a rainy day, you are storing it, when you put away money, it would still be valuable later because it has a store value in it. (e.g. Your cellphone cost Five thousand and you sell it to other person it's price maybe lessen but when you store a hundred pesos it will surely also cost a hundred pesos.) Standard of deferred system, this means money can be used to pay for items bought or sold on credit, the item or service is bought on credit and paid for later in cash or check. (e.g. You went to a spa salon and then you only have a card money to purchase their service you need to pay the amount you used in cash to the bank.)