Money has several different functions and they are as follows:
1) Medium of Exchange:
Without money, our complicated economic system based on specialization and division of labour could be impossible and we would have gone to a very primitive form of production and exchange.
2) Unit of Account: Money may be used purely for accounting purposes, without having any real physical existence of its own. For instance, a government store in a community or society might say that every one had so many naira at his disposal each month. Goods could be given prices and each consumer purchases recorded, the consumer allowed to buy all her/she wanted until the supply of Naira was exhausted.
3) Store of Value:
Money is a store of purchasing power. In barter, you must take sone other goods in exchange immediately; with money, you can sell goods today and store the money until you need it.
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