First, the function of money refers to the role of money in social and economic life, which is the concrete embodiment of the essence of money.
Marx's division (traditional division) From the perspective of the unity of history and logic, Marx divided the functions of money into five functions: value scale, circulation means, payment means, storage means and world currency.
measure value
1. Definition: The value scale function of money means that money has the function of expressing and measuring the value of goods.
2. Features: Use concept currency. When money performs the function of value scale, it requires that money itself has value, but it does not necessarily need the existence of real money. People can use concept currency to measure the value of goods.
Second, the means of circulation (media function)
1. Definition: The function of money as a medium of exchange means that money acts as a medium in commodity trading to solve the intermediary problem of commodity exchange.
2. Features: Use real money. Different from the function of value scale, the means of circulation must be real money, but not necessarily the whole value, because people need the purchasing power of money rather than the metal as money.
3. Money demand: After the economy develops to a certain extent, banknotes with no real value exercise the circulation function, and the money demand in circulation is set as Md, which is determined by three factors: the quantity of goods in circulation, the price of goods and the speed of money circulation.
Third, means of payment.
1. Definition: The function of money as a means of payment refers to the unilateral transfer of money without accompanying the use of goods. It comes from commercial credit, such as paying off debts.
2. Features: No commodity moves to it at the same time and place.
3. Functional areas: block trade, national finance, bank credit, tax payment, rent, salary, debt settlement, credit purchase, etc.
Four storage methods
1. Definition: The value storage function of money refers to the storage of purchasing power beyond time. When performing this function, money exits circulation and is in a static state, and its play is based on the function of payment means.
2. The difference between the value storage function of metal currency and credit currency: financial currency is generally a full-value currency and a general representative of social wealth, which can spontaneously enter and exit the circulation field and regulate the circulation of money. Modern society mainly uses bank deposits and savings and direct storage of paper money to accumulate and preserve value. Different from the storage of precious metal currency, from the perspective of the whole society, deposit or savings does not mean that the corresponding amount of real value exits the circulation process and remains unchanged.