Answer:
Step-by-step explanation:
Uses of money:
1.Medium of exchange:
Money is mainly used as a medium of exchange in order to complete a transaction and facilitate it further. If money isn't used then people might have to resort to barter system in which goods are exchanged with goods which is not so suitable for an equal transaction to happen.
2.Store of Value:
While exchanging items for money, the money holds its value for the person or the organization in order to use it for further transactions. But storing money as a value isn't fancied because inflation occurs every now and then.
3.Unit of account:
Money as a unit of account refers to the unit in which items are sold or bought .Suppose lets just think that we are in a supermarket to buy a smartphone and it has its value written in terms of wheat (i.e. 25 bags of wheat etc.) wouldn't that be surprising. Therefore to maintain a standard of unit, money is introduced.