basic functions of money

a) Medium of exchange: As a medium of exchange, money is something generally accepted as payments for goods and services.
b) Measure of value: As a measure of value, money expresses worth in terms that most individuals understand.
c) Store of value: It means goods or services can be converted into money that is easily stored until some future time.
d) Transfer of value: It means through money we can sell moveable and immoveable belongings at one place and we can acquire and buy them elsewhere.

Types of money.

Commodity money: Money that has an alternative use as a commodity. I.e. gold, silver, ring, diamond, cattle, cigarettes etc.
Paper money: Money that we use in our day to day transaction in modern life. I.e. currency note.
Bank money: Money that deposits in the bank or other financial institution.