What functions does money perform to save the amount of cash in circulation?

The basic functions of money include: the measure of value, the means of circulation, the means of storage, the means of payment, and the world currency.

Among them: the measure of value and the means of circulation are the basic functions of money.

The simple meaning of the various functions of money is as follows:

The value scale refers to the social scale that money acts as a measure of the amount of value contained in the commodity. The reason why money can perform the function of value scale is that money itself also has value, so it can use its own value as a measure to measure the amount of value contained in other commodities;

The function of the means of circulation, the function of the means of circulation is that of money as a medium of commodity exchange, that is, as a means of purchase. Its main feature is that in the purchase and sale of commodities, the transfer of commodities and the transfer of currency are completed at the same time, which is commonly said to be the payment of money and delivery of goods in one hand;

The means of storage, the withdrawal of money from the field of circulation as a general representative of the wealth of society is preserved function. Money, as a means of storage, can spontaneously regulate the amount of money in circulation. When the amount of money needed in circulation decreases, the excess money is withdrawn from circulation; When the amount of money needed in circulation increases, part of the stored money enters circulation;

The means of payment, the means of payment emerged with the emergence of the sale of goods on credit. In the purchase of money on credit, money is used to pay debts. Later, it was used to pay ground rent, interest, taxes, wages, etc.;

World money, world money was created and developed with the development of commodity production and exchange. When the exchange of commodities goes beyond the boundaries of countries and develops into an international one, the value of commodities in the world is universal, and the currency, which is the form of expression of its value, becomes the general equivalent of commodities on a worldwide scale, that is, the world currency.

The function of money as a means of payment saves the amount of money needed in circulation. Promoted the commodity economy.

At the same time, it has further expanded the contradictions of the commodity economy.

1) The law of money circulation is the law that determines the amount of money required in circulation in a certain period of time. (2) The amount of money required in circulation depends on three factors: one is the total amount of goods to be sold, the second is the level of goods, and the third is the velocity of money.

The total amount of goods to be sold and the level and product of commodities are equal to the total amount of commodities, so the amount of money required in circulation can also be said to be determined by the total amount of commodities and the velocity of money. The law of money circulation is the law that determines the amount of money needed in circulation in a certain period of time.

1) The amount of money required in circulation depends on three factors:

1. It is the total amount of goods to be sold;

2. It is the best level of the commodity;

3. It is the velocity of the currency.

In the actual exchange process, the quantity and total amount of commodities in circulation are constantly changing, and the average circulation rate of the same unit of currency is also constantly changing. Therefore, the actual demand for money is a quantity that fluctuates frequently. However, in the case of the circulation of metal money, since the money itself has value and can perform the function of a means of storage, the amount of money in circulation can be spontaneously adjusted to meet the needs of commodity circulation, not too much, not too little.

The law of money circulation, also known as the law of money demand, refers to the law of the amount of money objectively required in the process of commodity circulation in a country in a certain period of time. The content of the law of money circulation is: the amount of money required in circulation is directly proportional to the total amount of commodities to be realized, and inversely proportional to the average circulation velocity of the same unit of money.

The currency in circulation here refers to metal money, so it is also called the law of metal currency circulation"。In the case of the circulation of metal money, because the metal money has the function of a means of storage, it can spontaneously adjust the amount of money in circulation to make it compatible with the actual demand. Inflation or deflation is therefore unlikely.

The law of money circulation is the law that determines the amount of money required in circulation in a certain period of time, and the factors that determine the amount of money required in commodity circulation include the quantity of commodities to be circulated, the ** level of commodities and the velocity of currency circulation. The total amount of commodities is the product of the quantity of commodities to be circulated and the level of commodities. The law of money circulation is expressed by the formula as:

The total amount of money required in the circulation of commodities in a certain period of time = the velocity (number of times) of one unit of currency"

1. Money performs the function of a means of circulation when it realizes the exchange and circulation of commodities through it.

2. General equivalents.

The emergence of commodities, which are separated from commodities and serve as the uniform expression of value of all other commodities, is the inevitable result of the development of commodity production and exchange.

3. Historically, general equivalents have been undertaken by some special commodities, and with the progress of society, **and** have become the most suitable currencies to perform the functions of general equivalents. Money is a special commodity that is separated from a commodity and fixed to act as a general equivalent.

4. Currency (ccy) is a tool for measuring the best goods, a medium for purchasing goods, a means of preserving wealth, and a contract between the owner of property and the market on the right of exchange, which is essentially an agreement between the owner.

Extended Information: The Essence of MoneyMoney, by its very nature, is a contract between owners about the right of exchange, and different forms of money are essentially unified. In the past, due to people's lack of understanding of the nature of money, it was wrong to divide money into different types from different angles, such as:

According to the commodity value of the currency.

It is divided into two categories: debt money and non-debt money; According to whether the exchange ratio of *** is agreed, it is divided into convertible currency and non-convertible currency and so on.

In terms of form, money can be divided into physical money and formal money according to the commodity value of money, and physical money itself is a special commodity, including the amount of value, such as sheep, ***, etc.; Whereas, formal money itself has no quantity of value, its value is contractually agreed, only contractually valued. The two forms are different, but they are unified in nature, that is, they are both agreed to be used as a medium of exchange, and both have contractual value. The purchasing power of a currency.

It is determined by the contractual value of money, but the purchasing power of physical money is also affected by the value of its own goods, which is usually less than its contractual value as money.

Coin issuance. Usually, only one currency is used in each country and is issued and controlled by a bank. However, there are exceptions where multiple countries can use the same currency, such as the euro, which is used in the European Union.

Francs in the Economic Community of West African States (ECOWAS).

and the Latin Monetary Confederation in the 19th century, a currency equivalent with a different name but free circulation within the Union. A country can choose the currency of another country as legal tender, for example, Panama.

Choose USD as your fiat currency. Different currencies may also use the same name, for example, in France and Belgium.

Before the use of the euro, they were called francs as the currency of Switzerland.

Some countries do not have a secondary currency, or if they do have a secondary currency, it is only a theoretical conversion unit because the value of the currency is too small, and no actual currency, such as the Japanese yen, is issued.

and won.

The primary function of money is the means of circulation, and the holder holds the currency in order to buy other goods.

When barter developed to the medium of exchange, the value of commodities was measured in money.

At this point, another function of money arises: the measure of value.

Adam Smith also talked about the storage function of money, the payment function.

However, he placed special emphasis on the circulation function of money.

Answer]: c, d

The demand for money that performs the function of a means of circulation is mainly affected by the total amount of goods expected to be sold at a certain time and the velocity of money circulation. In a certain period of time, under the condition that the velocity of money remains unchanged, the total amount of goods to be sold** is proportional to the amount of money required. In a certain period of time, when the total amount of goods to be sold and ready for the first sale remains unchanged, the more money is circulated, the less the amount of goods and hunger coins is needed, and the more money is needed.

Answer] :d means of circulation is the function of money as a medium of exchange in the circulation of commodities. The means of payment refer to the functions of money used to pay off debts and pay rent, interest, wages, etc. in the process of purchasing and selling goods on credit.

In fact, money as a means of payment is a medium of communication and exchange, and it is a unilateral and circular value transfer, and options a, b, and c belong to the embodiment of the function of monetary payment.

Money is a widely accepted medium of exchange, which has the characteristics of performing the function of a means of circulation in the economy. Performing the function of a means of circulation in means that money is an important tool in economic activity, facilitating the exchange of goods and services and providing the necessary support for economic activity. Here are some detailed descriptions of the functions in which money performs the function of a means of circulation:

Commodity medium of exchange: Money, as a medium of commodity exchange, can be used as a medium between two parties to exchange. In the absence of money, the exchange of commodities requires direct exchange between the two parties, which is inefficient and difficult to achieve.

As a generally accepted medium of exchange, money can easily complete the exchange of goods and improve the efficiency of transactions.

Store of value: Money can be used as a store of value and plays an important role in economic activities. Due to the universally accepted nature of money, one can convert wealth into money to store value so that it can be easily exchanged when needed.

As a result, money can be used as a store of value to help people manage their wealth.

Unit of Measurement: Money can also be used as a unit of measurement to allow people to measure the value of goods and services. In economic activity, money is a universally accepted medium of exchange that can be used to measure the value of other goods and services and to make easy comparisons.

Debt Settlement Medium: Money can be used as a debt settlement medium. When people need to borrow, money can be used as a medium of payment so that borrowers can pay off their debts conveniently.

In economic activities, money, as a universally accepted medium of exchange, can help people deal with debt problems and contribute to the stability and development of economic activities.

In short, the function of money as a means of circulation refers to its role as a generally accepted medium of exchange, a store of value, a unit of measurement of value, and a medium for debt settlement. The role of the currency in economic activities is important, it can facilitate the exchange of goods and services, provide necessary support for economic activities, and also contribute to the stability and development of economic activities.

Answer]: a, c, d

The characteristics of the means of currency execution and circulation: First, it must be a realistic currency. Second, it doesn't need to be a friend comic to have full value, and it can be replaced by symbols. Option E is characterized by the means of money storage.