money_notes

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What Makes Money Important?

Money serves these functions:

1. It is a medium of exchange.

Money is valuable because it is accepted in buying and selling goods and services.

Money makes trading easier than would be the case with barter.

2. It is a store of value.

Money is a way of storing wealth. For example, if you work today, you can get

paid in money and wait to spend it in the future.

3. It is a measure of value.

Money can be used to state how much things are worth. The value of goods and

services can be expressed in money prices, allowing for easy comparisons.