What are the characteristics of money?

Money is a verifiable item or digital entity that has value and is widely accepted as payment. The following are the basic characteristics of money. First and foremost, money acts as a medium of exchange that facilitates commercial transactions. Money can be exchanged for goods, services and labor.

What are the functions of money?

We will explore that shortly. Regardless of the form of money (gold coins, paper notes, bitcoin) there are three primary functions of money: Let’s explore each of these money functions with examples. The first function of money is a medium of exchange, or a common item that people use to carry out transactions.

What are the different types of money?

Throughout history, money has taken many forms: shells, salt, sticks, stones, coins, paper, and now, digital money like digital USD and bitcoin. The specific types of money have evolved over thousands of years as better forms of money emerged. What makes a form of money better than another? We will explore that shortly.