Value scale: It is a function used to measure and express the value of commodities, and it is the most basic and important function of currency. Just as the ruler for measuring length has its own length, and the weight for weighing things has its own weight, the currency for measuring the value of commodities is also a commodity and has value; things without value cannot serve as a measure of value. Except for electronic money. Currency as a measure of value means that the value of various commodities is expressed as a certain amount of money to indicate that the value of various commodities is the same in terms of quality and can be compared in terms of quantity.
Means of circulation: The function of currency as a medium of exchange for commodities. In the process of commodity exchange, commodity sellers convert commodities into currency, and then use currency to purchase commodities. Here, currency plays the role of a medium of exchange and performs the functions of a means of circulation. The function of currency as a measure of value is the premise of its function as a means of circulation, and the function of currency as a means of circulation is a further development of the function of value measure.
Storage method: A function of storing currency as an independent form of value and a general representative of social wealth when it exits the field of circulation. Money can perform the functions of storage means because it is a general equivalent and can be used to purchase all commodities, so money storage is necessary. As a means of storage, currency can spontaneously regulate the circulation of currency and act as a reservoir. When the circulation of commodities on the market shrinks and there is too much currency in circulation, part of the currency will exit the circulation and be stored; when the circulation of commodities on the market expands and the demand for money increases, some of the currency in the storage state will be stored again. Re-enter circulation.
Means of payment: The functions performed by currency as an independent form of value during unilateral movements (such as paying off debts, paying taxes, paying wages and rents, etc.). The function of currency as a means of payment is produced to meet the needs of commodity production and commodity exchange development. Currency as a means of payment, on the one hand, can reduce the amount of currency needed in circulation, save a lot of cash, and promote the development of commodity circulation.
World currency: Currency performs the function of general equivalent in the world market. Due to the occurrence and development of international trade, currency circulation exceeds the scope of a country and plays a role in the world market, so currency has the function of world currency. As a world currency, it must be gold and silver in full value, and must take off the regional coat of coinage and appear in the shape of gold and silver nuggets. Coins and banknotes that used to play a role in various countries have lost their use in the world market.
Public Foundation Guidance of Fujian Public Institutions