Money is very important in every economy. It helps people buy things, save, compare prices, and even borrow. Here are the 4 main functions of money:

1. MEDIUM OF EXCHANGE

Money helps people buy and sell things.

No need to trade goods anymore.

Example: You give ₹50 and get a packet of chips.

It makes buying and selling easy and quick.

2. MEASURE OF VALUE

Money tells us how much something is worth.

We can compare prices easily.

Example: A toy costs ₹500 and a book costs ₹300 — now you know which is more expensive.

It puts value in numbers.

3. STORE OF VALUE

Money can be saved and used in the future.

It keeps its value (unless inflation is high).

Example: Save ₹1,000 today. Use it next month to buy something.

It helps people save and plan.

4. STANDARD OF DEFERRED PAYMENT

Money lets you buy now and pay later.

Useful for loans and borrowing.

Example: Buy a phone now and pay in monthly installments.

It supports credit and debt systems.

IN SHORT:

Money is not just paper.

It is a powerful tool that helps us:

Buy and sell

Know value

Save for later

Pay in the future