Money functions

Money has three basic functions in human life. First of all, it states
the medium of exchange which is a payment instrument with a certain value to which
they all trust. It is also a measure of value that allows you to easily determine prices
goods and services as opposed to the times when barter performed its functions – that is
exchange. Most importantly, financial resources serve as a means of custody, i.e.
storage and accumulation of value. Mankiw points out that money is a collection
assets used by people to buy goods and services from others
It drives the economy and supports the development of the market. Importantly, money apart from
fulfilling its functions must also have certain inherent characteristics. Money as
the medium of exchange should meet the following characteristics: widely accepted and
recognition by society. Money must be portable and handy, easily
divisible into smaller units, difficult to counterfeit and durable. In case of
technology advancing, it is also important that virtual assets are safe and resistant
cyber attacks, stable and proven.


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