What Is Money?
Money is an economic unit that serves as a generally accepted medium of exchange for goods and services. It enables trade by replacing barter systems with standardized value units.
Functions and Types of Money
Money performs three core functions: a medium of exchange, a unit of account, and a store of value. Major types include commodity money, fiat money, and digital money, with fiat currency issued by central banks.
How Money Moves in the Economy
Money circulates through spending, saving, and investment, influencing demand, prices, and economic growth. Central banks manage supply and interest rates to maintain stability. For more details, visit Investopedia Money Definition.
