What Money Is and How It Is Created
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Money is one of the most familiar things in the world. Despite this, many people fail to accurately explain what money is or how it works. Ideals such as the creation, measurement, and growth of money are abstract concepts to many. The understanding of money is quite different to many people due to its multifaceted nature. The general understanding though is that it is the means by which we would get our needs and wants.
Money is:
- A unit of account. It provides the base for prices.
- A store of value. It can be saved for later use.
- Medium of exchange. People can use it to buy and sell from each other.
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