Money serves theree major functions i.e. medium of exchange i.e. people settle on something that will serve as a medium of exchange they select something to be money , serves as a unit of account i.e. serves as a unit of account, which is a consistent means of measuring the value of things and as a store of value i.e. acts as a store of value, it can be used as a standard for future payments but it is not risk free. Money can either be Commodity money is money that has value apart from its use as money, Checkable deposits- which are balances in checking accounts, and traveler’s checks are other forms of money that have no intrinsic value etc. How does money depreciate which makes life hard ?