1. Medium of Exchange – it’s an object that may be used to trade for goods and services
2. Unit of Account – This takes a medium of exchange and translates the value of economic goods or services into the medium of exchange’s terms. For instance, a gallon of gas may be translated into the medium of exchange’s terms as $5 for one gallon.
3. Store of Value – just means that the medium of exchange will retain much of its value into the future.