The agency functions of a commercial bank are as follows:
(i) To transfer funds from one place to another.
(ii) To collect funds on behalf of the customers.
(iii) To purchase and sell shares and debentures on behalf of the customers.
(iv) To provide income-tax consultancy.
(v) To pay bills and insurance premium as per customer's direction.
(vi) To provide facility of traveller's cheque and letter of credit.

Money can be defined as a generally acceptable medium that can be exchanged for goods and services, and can be used as a measure and store of value.
Money as a Medium of exchange: Money acts as an intermediary in the exchange transactions of goods and services. Money solves the problem of double coincidence of wants by acting as a  medium if exchange for all goods and services. For example, if a vegetable grocer wants a cart but the cart manufacture want clothes, and not vegetables, then the grocer can use money to buy a cart. Similarly, the cart manufacturer can then use the money to buy clothes. Thus, everyone's wants can be satisfied as money acts as a medium of exchange. Money is also called a bearer of options or generalised purchasing power. This indicates the freedom of choice that the use of money offers. This function can only be performed properly if the value of money remains constant.

The four functions of money are:
(i) Money as a Unit of Value
(ii) Money as a Medium of Exchange
(iii) Money as a Standard of Deferred Payment
(iv) Money as a Store of Value
Money as a Unit of Value: Money acts as a convenient unit of account. The value of all goods or services can be expressed in monetary units. Money as a unit of value helps in measuring the value of exchange for various goods and services. For example, if the price of a pen is Rs.10 then a pen can be exchanged for ten monetary units. Therefore, money is a useful measuring ro0d of value provided the value of money or purchasing power remains constant.

Excves money supply leads to a situatin of inflation. Two meaures to control inflation are:
1. Increae tax rate
2. Reduce public expenditure

YES, the depositor will lose the interest earned if he withdraws his fixed deposit before the maturity date.

While money is generally acceptable, there is a lack of this feature of general acceptability in case of toys. The employee can exchange money for purchasing various goods and sevices at any point of time. He will not face the problem of lack of double coincidence of wants.

Cash reerve ratio (CRR) is the minimum fraction of thetotal deposit with the commercial bank, which they are required to keep with the central bank. If CRR is increaed, banks are required to keep more part of their deposits in the form of reserves or securities and will have fewer funds to lend. This will contract credit.

The ideal supply of money is that quantity in which the production capacity of the country can be fully utilised. In other words, that quantity of money which helps in achieving the full employment level and maximum output is called ideal supply of money.

Money is a generally acceptable medium that can be exchanged for goods and services, and can be used as a measure and store of value.
Money has undergone a process of historical evolution spread over a long period of time. During this process of historical evolution, a variety of things had been used as money. Commodities such as hides and skins of animals, domestic animals such as cattle, goats and agricultural products such as rice, wheat had ben used as money in different stages of economic evolution. In more recent times, metallic coins and paper notes have been used as a medium of exchange.

Barter is a system of exchange in which goods and services are directly trade for other goods and services without the mediation of money.
Money as a Standard of Deferred Payment: Deferred payments refer to those payments, which are made at some specific time in future. Money acts as standard in terms of which future or deferred payments are stated because money maintains a constant value over a period of time. Under barter system, goods could not be used for further constants due to the risk associated with type, quality and value of the goods. Money exchange has no such problem.