Money is whatever is generally in exchange for goods and services or in payment of debts. By general agreement, money consists of currency plus deposits in financial institution on which depositors may write checks.
Money’s four function as (1) a medium of exchange, (2) standard of value, (3) store of value, and (4) a way to measure debt.
*A medium of exchange. Money as a medium of exchange makes possible many of the complex efficiencies of modern economic life.
* A standard of value. In modern societies most values are prices or values expressed in money. Money provides a convenient unit for comparing values regardless of an item’s size or kind and for reducing values to a common denominator. …