WHAT IS MONEY?
Money is any item or medium of exchange that is accepted by people
for the payment of goods and services, as well as the repayment of
loans. Money makes the world go 'round. Economies rely on money
to facilitate transactions and to power financial growth.
WHY DO WE NEED MONEY?
Money is one of the most important tools in an economy as it allows
transactions. In the absence of money, the transactions would
become inefficient, and the economy will not be able to produce.
Think about it; if it weren't for money, there wouldn't be a good way
to trade for goods and services to meet your needs.
EVOLUTION OF MONEY
BARTER SYSTEM
Bartering is the exchange of goods and services between two or
more parties without the use of money. It is the oldest form of
commerce. Individuals and companies barter goods and services
between each other based on equivalent estimates of prices and
goods.
FUNCTION OF MONEY
Money functions as a medium of exchange, allowing individuals to
trade goods and services with one another. It also serves as a store of
value, allowing people to save wealth over time. Lastly, it functions as
a unit of value, enabling people to compare the worth of different
items.