Money & Banking
Money & Banking
     * Money & Banking /
     * Money: The Economic Definition
     * Money: The Economic Definition
     * Types of Money
     * American Money
     * US Money Supply
Money: The Economic Definition
   We all know what money is. We may have different terms for it—smackers,
   moolah—but money usually finds a way to overcome these barriers of
   money. They define it as something that serves as a medium of exchange,
   Money is a medium of exchange in the sense that we all agree to accept
   it in making transactions. Merchants agree to accept money in exchange
   for their goods; employees agree to accept money in exchange for their
   As a unit of accounting, money provides a simple device for identifying
   Money serves as a store of value in that it allows us to store the
   money lets us store the value of a long, hard week of work in a tidy
   little stack of cash. Without money, how would we set aside the
   In other words, economists largely define money by the functions that
   little metallic discs—money is anything that fills those three
   essential functions. Now, the best money is also highly convenient—it
   exchange. (If we used cows for money, how would we give change?) But
   "Money, money, money/ Must be funny/ In a rich man's world"
   Look it up...) is about money. It's about choice and risk and reward,
   money works.  The Gospel of Shmoop does not suggest that we all try to
   fit through the eye of the needle that money on its own really is the
   (As the Beatles sang, money can't buy me love.)
   (Or if you prefer the way Biggie Smalls put it: mo' money, mo'
   But whether you think money is the solution or money is the problem, it
   will help you to understand what money is, how it works, where it comes
Sometimes, a Song Says it Better: Money Money Money, by Abba
   Abba talks of a rich man’s world with “money, money, money.”
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Money & Banking - Learning Guide