Briefly explain the three functions of money

Money serves as a medium of exchange, which means it is generally accepted in exchange for goods and services. The existence of a medium of exchange reduces transaction costs. Money serves as a measure of value, allowing people to compare value and cost in a common unit, thus facilitating trade. Money is also used to store value, which means money is an asset. Although most forms of money do not pay interest like other assets, money is highly liquid, meaning it can easily be transformed into other goods.