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The primary function of money is intermediation in the process of change. The goods have a price, which comes from the relative value of some goods with respect to the others. These relationships originate in the comparison of the value of said goods and in the contingencies of the market.
The functions of money are diverse. Through these functions, money is differentiated from other economic assets such as stocks and bonds. Next, their importance and concept are evidenced.
• As a means of circulation: it serves as an intermediary in the process of circulation of goods. This function is momentary, since once the exchange of money by commodity has been made, it begins to serve immediately to carry out another transaction with another commodity. This allows the constant substitution of money in its formation of medium by its representatives such as paper money and fractional coins of incomplete value. The development of mercantile-capitalist economy highlights the power of money, that is, the power of the rich over the poor.
• As a measure of value: it allows the transfer of purchasing power from the present to the future. Money provides the material to express the value of the rest of the goods. The value expressed by the merchandise is considered its price.
• As a means of accumulation or hoarding: this function can only be made by full value money, for example ingots or other gold objects and coins. Earlier thanks to the circulation of the gold coins was of paramount importance as it served as spontaneous regulation of the monetary circulation in countries considered capitalist.
• As a means of payment: this function takes place when the process of buying and selling a particular merchandise is carried out through credit, that is to say with a delay in payment. Pagan money in this way will come into circulation when the payment term expires, but not as a means of circulation but as a method of payment. It will fulfill these functions also in the payment of taxes, rent of the ground, operations of loan and in the payment of wages. This function of money enables the reciprocal settlement of the debtor obligations and allows to save money in cash.
• As World Money: in this role money acts as universal money in the world market and in the payment system that exists between the various countries of the world. In capitalism money role changes by becoming capital, capitalist society in turn use money in the ordinary functions of simple commodity producers, while in socialist society money expresses socialist production relations are used for rapid growth Of social production and the welfare of the people.
Money fulfills its function of universal money in the world market and in the system of payments between the different countries. In the world market, money acts in the natural form, like precious metal ingots. The development of the functions of money reflects that of commodity production and its contradictions. With the birth and development of capitalism, the role of money essentially changes. It becomes capital, that is, in the midst of exploiting wage labor, in the midst of appropriating the unpaid labor of salaried workers. At the same time, in the capitalist society, money is used by ordinary producers of commodities (peasants, artisans) and laborers. In socialist society, where money expresses socialist relations of production, its functions are used in the planned economy as efficient economic levers for the planned and rapid growth of social production and to raise the welfare of the people. In the socialist economy, money has ceased to be capital, and with its functions it contributes to the rational development of the economic and financial activity of enterprises, branches of the national economy and the economy of the country, as well as of the whole world system of socialism . In the higher phase of communism, as money-mercantile relations disappear, the functions of money also disappear.
The quantitative equation of money is a mathematical identity that holds that money mass multiplied by its speed of circulation is equal to the product of prices by the quantities produced in the economy.
M * V = P * Q
Where:
• M = Monetary Mass
• P = Prices
• V = Speed of Money
• Q = Product Volume
We will go further in this formula when developing the subject of monetary policy.

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