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.