What are the basic function of money?Explain in detail the derivative function of money?
The basic functions of money : An Application of the Input Independence Transformation According to the earlier definitions, “money is a commodity which is generally acceptable as a medium of exchange and at the same time it acts as a measure and a store of value “. This is why professor Sigwick says “money is what, what money does. Thus the economists agree that anything which is to serve as money should be: 1 generally acceptable 2 could be used to measure the values of goods and services 3 could be used to store the values. Thus keeping in view the above mentioned role and functions of money the experts follow the following methods to define money: 1 Transaction Approach which accords money as a medium of exchange. 2 Liquidity Approach which accords money as a temporary store of value. 3 Scientific Construct Approach which accords money as a measure of value. In the early times there was barter system which is furnished with a lot of problems. Accordingly, the barter system had to b
