Money consists of any economic good, or any claim on such a good, that serves as a general medium of indirect exchange and that acts as a final means of payment.

Economic Good

A "good" satisfies a human need. An "economic good" consists of a "good" found in limited quantity, thereby giving it value to an individual.

Medium of Indirect Exchange

A trader will accept a less desirable good because he can exchange it for another more desirable good; thus, making the good accepted medium of indirect exchange. The potential for future trades gives a medium of indirect exchange more value than it would otherwise have in the trader's value scale.

General

The wide acceptance of money gives it a distinction from other media of indirect exchange. People will accept money as payment because of their confidence that they can later exchange it with many other traders for other goods.

Final Means of Payment

Money requires no further conversion to complete the transaction for which a trader accepts money. By contrast credit cards, which some people confuse with money, create obligations that buyers must later pay.