Money is an idea, a concept. It is the idea or concept used as a medium of exchange, store of value and unit of price.
- Medium of Exchange: The exchange of value.
- Store of Value: Money can be saved, transacted or invested. Money can be stored and used later.
- Unit of Price: Money determines price and financial worth.
The major types of mediums of exchange are:
- Trading and Bartering
- Buying and Selling
- Giving and Receiving
Store of value function in:
- Savings
- Transactions
- Investments
Unit of price is seen in two kind of ways:
- Goods – which also are products
- Services – labor that is performed at a cost
There are three forms of money.
- Commodities – Precious Metals: gold, silver and platium. Precious Gems: diamonds, emeralds, and rubies.
- Government Issued- American Dollar, Russian Rubles, Chinese Yuan, etc.
- Cryptocurrency (Digitaltized)- Bitcoin, Ehereum, XRP, XLM, etc.