What is Money
Money is a medium of exchange that facilitates transactions for goods and services. It serves three main functions:
- Medium of Exchange (I owe you) – Used to buy and sell goods/services without bartering.
- Store of Value – Retains value over time, allowing deferred spending.
- Unit of Account – Provides a standard measure for pricing and comparing value.
Money can take different forms, including physical (cash, coins), digital (bank balances, cryptocurrencies), and representative (gold-backed currency). Its value is based on trust, scarcity, and economic systems.
written with: chatgpt