how is money used 
money primarily functions as the good people use for exchanges of items of value however it also has secondary functions that derive from its use as a medium of exchange due to money s use as a medium of exchange for buying and selling and as a value indicator for all kinds of goods and services money can be used as a unit of account that means money can keep track of changes in the value of items over time and multiple transactions people can use it to compare the values of various combinations or quantities of different goods and services money as a unit of account makes it possible to account for profits and losses balance a budget and value the total assets of a company money s usefulness as a medium of exchange in transactions is inherently future oriented as such it provides a means to store a monetary value for use in the future without having that value deteriorate 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 to the extent that money is accepted as a medium of exchange and serves as a useful store of value it can be used to transfer value over different time periods in the form of credits and debts one person can borrow a quantity of money from someone else for an agreed upon period of time and repay a different agreed upon quantity of money at a future date different types of moneymoney can originate out of the spontaneous order of markets as traders barter for various goods some goods will prove more convenient than others because they have the best combination of the five properties of money listed above over time these goods may become desirable as objects of exchange rather than for practical use eventually people may come to desire a good solely for future trading historically precious metals such as gold and silver were often used as market determined monies they were highly prized across many different cultures and societies today people in cashless economies frequently turn to cigarettes instant noodles or other nonperishable goods as a market determined money substitute 2