What is money?
Money is a medium of exchange that is widely accepted in transactions involving goods, services, or settlement of debts. It serves as a unit of account, a store of value, and a standard of deferred payment. Throughout history, various forms of money have been used, including physical objects like shells or precious metals, as well as representative forms like paper currency and digital currencies. The primary functions of money include: 1. **Medium of Exchange:** Money facilitates the buying and selling of goods and services by serving as a commonly accepted intermediary in transactions. 2. **Unit of Account:** Money provides a standard measure for the valuation of goods and services, allowing for easier comparison of prices. 3. **Store of Value:** Money can be saved or stored for future use, allowing individuals to defer their purchasing power over time. 4. **Standard of Deferred Payment:** Money enables transactions where payment can be postponed to a future date, providing a ba...
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