Money Basics

As you have seen from the introduction to exchange, money plays a vital role in the efficient operation of large markets. I will cover some of the basics of money in this section and go into more detail in the category devoted entirely to money.

Those basics include:

Definition of Money

A precise working definition of money opens the door to understanding all other aspects of money.

Role of Money

Money plays a critically important, although frequently misunderstood, role in the process of exchange in all markets.

Value of Money

A lot of confusion revolves around the source and measure of value for money. Understanding the value of money leads to better understanding of its role in market exchanges.

Let's learn some basics about money, beginning with a definition of money.