What is Money

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What is Money?
Anything that is widely accepted as a medium of exchange and therefore can be used to buy goods and services or to settle debts.

  • Medium of exchange
Something accepted as payment for goods and services

  • Store of wealth
Allows people to hold and accumulate wealth
Wealth is the sum of all valuable assets less liabilities

  • Unit of account
Allows people to determine the value of goods

Characteristics of money
  • acceptable
  • durable
  • portable
  • divisible
  • homogeneous
  • easily recognized
  • not easily copied
  • controlled by central authority