What are the functions of money, and how do they help the economy?

Money serves as a medium of exchange, a store of value, a common denomination for measuring the value of goods, and a standard of deferred payment.

• These functions help simplify trade by providing a common tool for transactions, enabling people to save wealth for future use, compare prices, and make payments over time.

· The functions of money contribute to economic stability by making transactions smoother and more predictable.