What is Money?
Discussions around money and what exactly it represents have arisen numerous times since the concept came into existence. To this day, the definition of money is still the subject of much contention. There is a multiplicity of views as to what constitutes money but they all more or less share some major common themes. Money is a Medium of Exchange This definition of money is perhaps what comes to most peoples' minds when they think of money. The function of money as a medium of exchange simply means it can be used to trade goods and services. In a barter system parties who wish to trade must provide items that either party is willing to accept in exchange for what they have to trade. This is called a double coincidence of wants. It can be problematic especially when goods or services are particularly rare or expensive. Money eliminates this problem by acting as a common denominator for which largely all goods and services can be exchanged. Money is a Unit of Account As a unit of a