1.  It is a medium of exchange: Money facilitates exchange hence, it is used as a medium of exchange. This function tends to eliminate the problem of double coincidence of wants faced by the batter system of trade.

Money as a medium of exchange enables people to sell what they have and use the money to buy what they need. This helps to save time and make it easier for the exchange of goods and services among people.

1. It is a measure of value: Money enables people to determine with some degree of certainty the value of goods and services to be exchanged. This function tends to eliminate the problem of measurement, indivisibility and bulkiness that were often encountered in the barter system e. g with money a bunch of plantain is 2000 FRS ; a pen is 100 FRS and 80 leaves exercise book is 300frs, and a litre of Mayor oil is 1100frs. It is easy to measure the worth of a good in terms of another following their money values.

2. It serves as a unit of account: Money facilitates calculations in monetary units. This function overcomes the problem of measurement in the barter system. It helps people to keep accounts of economic activities and other transactions. Money also makes it possible to compare the economies of different countries, know the salaries and wages of workers costs and profits involved in any given economic project. It is also possible that the rate of economic transactions can be compared between different periods of time n monetary units.

3. It serves as a store of value: Money serves as a store of value since it can be converted into goods and services at a future date. Money as a store of value helps people to sell what they have, store the money and use it to buy what they want. In future since money is durable. Consequently, people prefer to store most of their wealth in the form of money which is kept with the banks. Money is also saved with the banks against rainy days or unforeseen circumstances. This function has overcome the problem of storage in the barter system

4.  It serves as a standard for deferred payments: Money facilitates credit transactions. Hire purchases, settling of debts at a future date and managing of contracts. Since money is a legal tender, the confidence people have on it facilitates deferred payments or settlement of debts at a future date. The only Problem with this function is that the value of money is not 100% stable.

5. It acts as one way payment or direct payment to government: During the barter trade it was not possible for people to pay their taxes to the government but at the same time they needed social facilities from the government. Money acts as one way payment in that the people pay their taxes to the government in the form of money and the government in turn uses this money to provide them with social amenities in order to achieve her objective.