BANKING AFFAIRS

Detailed explanation-1: -So, when people exchange items for money, that money retains a particular value that can be used in other transactions. This ability to function as a store of value facilitates saving for the future and engaging in transactions over long distances.

Detailed explanation-2: -With the help of money, people can store surplus purchasing power and use it whenever they wish to. Money serves as a store of value for goods in liquid form. Savings in the form of money are not only secure but the possibility of it being disrupted is very low. Besides, money can be carried around and is portable.

Detailed explanation-3: -Dynamic Functions of Money: Further, it helps in converting savings into investments.

Detailed explanation-4: -Money’s most important function is as a medium of exchange to facilitate transactions. Without money, all transactions would have to be conducted by barter, which involves direct exchange of one good or service for another.

Detailed explanation-5: -Money serves several functions: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.