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Janusz
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Wendy Ye
Money is a medium of exchange used to facilitate transactions for goods and services. It serves several key functions:
Medium of Exchange – Money eliminates the need for barter by providing a universally accepted form of payment.
Store of Value – Money retains its value over time, allowing people to save and use it later.
Unit of Account – Money provides a standard measure for pricing goods and services.
Standard of Deferred Payment – Money is used for credit transactions, allowing payments to be made over time.
Money can take different forms, including:
Physical Money – Coins and banknotes issued by governments.
Digital Money – Online banking, cryptocurrencies, and electronic payments.
Commodity Money – Items with intrinsic value like gold and silver.
Fiat Money – Government-issued currency that has no intrinsic value but is accepted by law.
