Most of the economists will define money by its four classical functions:
- Means of exchange;
- Measure of value;
- Medium of deferred value; and
- Store of value.
We will go over a brief explanation of each of these functions of money and how it relates to Islamic economics. Specifically, we will discuss some of the deficiencies of money (i.e., fiat money) in light of these functions. Ultimately, the fundamental question we wish to answer is whether money is a commodity.
Source: Abu Saud, Mahmud. “Money, Interest and Qirad.” Studies in Islamic Economics. Ed. Khurshid Ahmad. Leicester: The Islamic Foundation, 1980. 59.