Money Concept with Details

Store of Value:

By working as a store of value money removed the inconvenience of "lack of store of value". Now wealth can be stored in form of bonds, share certificates etc. which are though not perishable yet open to hazards of inflation.
3. Price Mechanism:
Money established the price mechanism all over the world. By this, it removed the inconvenience of "no measure of value". The price mechanism then gave rise to market forces of demand and supply which today form basis of almost every economic model.
4. Credit and Advances:
 Money can be advanced at interest. Thus money has removed the inconvenience
of "no Standard of deferred payment'* Now loans can be taken from banks and financial institutions, debt and long term payments can be stated in terms of money.
5. Banking Institutions:
Money has greatly helped in the establishment, working and development of all banking and monetary institutions. The whole banking structure is built on the basis of money. It also plays an important role in the working of money and capital markets. It can be rightly said that banks are such institutions which are working just because of the simple reason that man has invented money.
6. Investment & Savings:
Money has made it possible and extremely easy to invest and save. Now we can save our wealth by investing it in different saving schemes. Besides this wealth can also be stored in the form of foreign exchange, gold, silver etc. "which can be conveniently converted into currency.
7. Public Finance/Government Revenues:
Money has greatly helped the accounting of public finance, tax revenues and government revenues etc. It has facilitated the government borrowings and spending. It is also the basis for working of national financial institutions.
8. Liquidity to International Trade:
Money has provided the much needed liquidity to international trade. Under barter, it was not possible to trade effectively with foreign countries. There were no appropriate means of making foreign payments. Neither there was any suitable exchange system nor was any policy for valuation of foreign goods. Money, however, removed these difficulties. It helped in establishing exchange system throughout the world which greatly facilitated the international trade.