Under the condition of developed commodity economy, money has five functions: value scale, circulation means, storage means, payment means and world currency. These five functions of money are gradually formed with the development of commodity economy. Among them, the measure of value and the means of circulation are the most basic functions of money.
Money is first used as a measure of value to measure the value of goods, and then as a means of circulation to realize the value of goods. Value measure is a function used to measure and express commodity value, and it is the most basic and important function of money.
Just as a ruler for measuring length has its own length and a weight for measuring things has its own weight, money for measuring the value of goods is also a valuable commodity: worthless things cannot be used as a measure of value. Except electronic money. The function of money as a medium of commodity exchange. In the process of commodity exchange, commodity sellers convert commodities into money, and then buy commodities with money.
Here, money plays the role of medium of exchange and performs the function of circulation means. The function of money as a measure of value is the premise of its function as a means of circulation, and the function of money as a means of circulation is the further development of the function of value measure. Money leaves the circulation field and is stored as an independent value form and a general representative of social wealth.