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The main feature of money is its acceptance as the means of payment or medium of exchange. Nevertheless, money has other functions. It is a standard of value, a unit of account, a store of value and a standard of deferred payment.
Money, as the medium of exchange, is used in one half of almost all exchange. Workers work for money. We accept money not to consume it directly but because it can subsequently be used to buy things we wish to consume. Money is the medium through which people exchange goods and services.
Money is generally accepted in payment for goods, services and debts. It makes the trading process simpler and more efficient.
Money can also serve as a standard of value. Society considers it convenient to use a monetary unit to determine relative costs of different goods and services.
To be accepted in exchange, money has to be a store of value. Money is a store of value because it can be used to make purchases in the future.
Finally, money serves as a standard of deferred payment or a unit of account. When you borrow, the amount to be repaid next year is measured in money value.
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