Final answer:
Money serves as a medium of exchange, a unit of account, a store of value, and a standard of deferred payment. There are two types of money: commodity money and fiat money.
Step-by-step explanation:
Money serves several functions: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment. There are two types of money: commodity money and fiat money. Commodity money is an item used as money, but which also has value from its use as something other than money, while fiat money has no intrinsic value but is declared by a government to be the country's legal tender.