The basic function of commodities, the basic function of money

The basic function of the commodity

1. The scale of value and the means of circulation are the two basic functions of money;

2. The reason why money can act as a measure of value is because money is a commodity and has value in itself;

3. The function of money to perform the value scale is to express the value of commodities in money;

4. Only the concept of money is needed. The function of money as a medium of commodity exchange is called a means of circulation;

5. Currency needs realistic money when performing the function of a means of circulation;

6. The exchange of commodities with money as the medium is called commodity circulation.

The measure of value and the means of circulation are the two basic functions of money.

The reason why money can function as a measure of value is because money is a commodity and has value in itself. Money performs the function of a value scale, that is, the value of commodities is expressed in money (expressed as a certain **); Only the idea of money is needed.

The function of money as a medium of commodity exchange is called a means of circulation; Currency needs a realistic currency to perform the function of a means of circulation. The exchange of commodities through the medium of money is called commodity circulation, and its formula is: commodity - currency - commodity.

Among them, the measure of value and the means of circulation are the basic functions of money. Because the special thing about money compared with ordinary commodities is that it can use itself to measure the value of other commodities, and promote its use within a certain range. Three more.

1.Value scale.

The value scale is a function used to measure and express the value of commodities, and it is the most basic and important thing of money.

functions; The value of a commodity is expressed in a certain amount of money, which is the ** of the commodity. Value is the basis of value, and it is the monetary representation of value. The function of money as a measure of value is to express it as a variety of ** according to the value of various commodities.

For example, 1 cow is worth 2 taels, where 2 taels is 1 cow.

2.means of circulation.

Money functions as a medium of exchange for commodities. In the process of exchanging goods, the seller of goods converts goods into money, and then uses the money to buy goods. Here, money plays the role of a medium of exchange, performing the function of a means of circulation.

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 a further development of the function of a measure of value.

For example, if a piece of clothing is 100 yuan, and you buy this dress for 100 yuan, this is the means of circulation.

3.means of storage.

The withdrawal of money from the field of circulation is a function of storing as an independent form of value and a general representation of social wealth. Money is able to perform the function of a store of goods because it is a general equivalent that can be used to buy all commodities, and therefore a store of money is necessary.

The means of storage of money must be actual money of sufficient value, so only gold and silver bars or gold and silver coinage can perform this function.

4.means of payment.

Under the condition that money is used as a means of payment, the relationship between buyers and sellers is no longer a simple relationship between buying and selling, but a relationship of creditor's rights and debts.

For example, money is used to pay for deferred payments in the process of buying goods on credit, and it is used to pay debts, rents, interest, wages, etc.

5.World currency.

Money performs the function of a general equivalent on the world market. Due to the occurrence and development of international currency, currency circulation goes beyond the scope of a country and plays a role in the world market, so currency has the function of world currency.

For example, a country directly buys goods from another country with gold and silver; Balance the international ** balance, such as the repayment of international debts, the payment of interest and other unproductive payments, the payment of war reparations, etc.

The basic functions of money are divided into two types: the measure of value and the means of circulation.

Extended Resources:

The function of money refers to the concrete embodiment of the essence of money. Currency has five major functions: value scale, means of circulation, means of storage, means of payment, and world currency. Among them, the measure of value and the means of circulation are the most basic functions of money.

1.What is a value scale?

The scale of value refers to the function of money to measure and express the amount of value of a commodity. Money, as a measure of value, is nothing more than the external form of the intrinsic measure of value of commodities, that is, labor time. In performing the function of a measure of value, money only needs a conceptual currency.

2.What is a means of circulation?

The means of circulation refer to the functions played by money as an intermediary in the circulation of commodities.

3.What is a means of storage?

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 money that serves as a means of storage must be real gold and silver money of full value.

Only gold and silver coinage or gold and silver bars can perform the function of a store of money.

4.What is a means of payment?

The means of payment refer to the deferred payment of money in the process of purchasing and selling goods on credit, and used to pay off debts or pay taxes, rents, wages and other functions. It is characterized by "first delivery, later payment", and the giving of goods and the payment of goods are separated in time and space.

5.What is World Currency?

World currencies need to be preserved in value, secure and allow holders to exchange for other currencies at will. The U.S. dollar is now recognized as the world's currency because of these properties.

1.Value scale: When money implements the value scale, it does not need real money, only conceptual money.

2.Means of circulation: When money implements the means of circulation, it can only use real money, not conceptual money.

3.Means of storage: The currency used as a means of storage should be metal money of sufficient value (such as gold and silver bars, etc.).

4.Means of payment: This can be real money or a means of transfer.

5.World currency: For a long period of time, only gold and silver served as the world currency, and now some kind of paper money, such as the US dollar, also functions as a world currency.

The generation of money.

Money is the inevitable product of the development of commodity production and commodity exchange, and the inevitable result of the development of the inherent contradictions of the commodity economy. With the development of the productive forces of society, the social division of labor and private ownership appeared, and the products of labor were transformed into commodities produced exclusively for exchange. The proportion of exchange of commodities is determined by the value of the average human labor condensed in the commodity, that is, the commodity.

With the development of exchange, different forms of value were created. The form of value successively goes through the simple or accidental form of value, the expanded form of value, the general form of value, and the monetary form. In the form of money, money is produced.

1 value scale, money can be used to measure the value of a commodity 2 means of circulation, money can accelerate the exchange of goods, conducive to circulation 3 storage means, money can play a role in value preservation, sometimes can store 4 means of payment, money is the main instrument of payment.

5 world currencies that can be traded with the world.

The basic attributes of a commodity are value and use value.

The scale of value and the flow of the bright and the false manuscript are the two basic functions of goodwill and currency.

General Commodity ** Function.

Since money is a commodity, it has both use and exchange value like all commodities. When it comes to different forms of value movement, money plays different roles: the measure of value, the means of circulation, the means of payment, the means of storage, and the world currency.

Among them, the measure of value and the means of circulation are the basic functions of money. The other three functions are derived from both.

Value Scale: The most basic and important function of moneyServes as a measure of performance and the value of all other commodities.

Means of circulation: The function of money as a medium of exchange in the circulation of goodsAs a means of circulation, money overcomes the difficulty of searching in barter, on the one hand, and deepens the inherent contradictions of the commodity economy on the other hand. The exchange of commodities through the medium of money divides the exchange into two separate acts: buying and selling.

The disconnect between the two in time and space contains the possibility of crisis.

means of storage. The function is the function of money being preserved as a general representative of the wealth of society when it is withdrawn from circulation.

means of payment. It refers to the function that money performs in the performance of the settlement of debts. In the exchange of commodities, commodities can be bought and sold without cash, and the cash can be paid on credit after a certain period of time.

Since buy first, pay later, the seller becomes the creditor and the buyer becomes the debtor. After the agreed period, the buyer pays off the debt to the seller in money. Here, money functions as a means of payment.

World currency. As a world currency, it must have full value and be a *** block, performing its function according to its actual weight. In fact, it is the gold and silver nuggets that play the role of the world's currency.

Paper money cannot act as a world currency, a world currency.

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.

Money in economics, in a narrow sense, is a standard item used to exchange commodities; Broadly speaking, it is an item that is used as a medium of exchange, a measure of value, a means of payment, and a store of value. Specifically, money has the functions of a medium of exchange, a standard of value, a standard of deferred payment, a store of value, and a world currency.

1. As a means of payment, on the one hand, money can reduce the amount of money needed in circulation, save a lot of cash, and promote the development of commodity circulation. After money performs the function of a means of payment, the amount of money required in the circulation of commodities can be expressed as follows: total amount of commodities ** The average number of times the same unit of money is in circulation = the amount of money required in the circulation of commodities.

On the other hand, money, as a means of payment, further expands the contradictions of the commodity economy. In the case of buying and selling on credit, there is a creditor-debtor relationship between many commodity producers, and if one of them fails to pay when due, it will cause a series of chain reactions"Pull a hair and move the whole body", so that the entire credit relationship is destroyed. For example, if one of them does not sell his goods within the specified period, he will not be able to repay his debts on time, and the interruption of one link in the payment chain may cause a monetary credit crisis.

It can be seen that the possibility of economic crisis has further developed after money has been used as a means of payment.

2. From the function of money as a means of payment, credit money is produced, such as bank bills, promissory notes, bills of exchange, checks, etc. With the development of capitalism, the more credit is caused, the greater the function of money as a means of payment, so that credit money occupies the field of large-scale transactions, while coinage is driven into the field of small transactions.

Note: In order to adapt to the circulation of the world market, each country must store a certain amount of gold and silver as reserves. This world monetary reserve increases or decreases as the flow of goods in the world market expands or shrinks.

The function of money is the role that money plays in people's economic life. Under the conditions of a developed commodity economy, money has the following five functions: 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, and the other three functions have appeared one after another in the development of the commodity economy.