Money is a vital component in modern economies from "summary" of The Economics of Money, Banking and Financial Markets, eBook, Global Edition by Frederic S. Mishkin
Money plays a crucial role in modern economies as it serves as a medium of exchange, a unit of account, and a store of value. As a medium of exchange, money enables transactions to take place smoothly by eliminating the need for barter. Without money, individuals would have to trade goods and services directly, which would be highly inefficient and limit the extent of economic activity. Furthermore, money acts as a unit of account by providing a common measure of value for goods and services. This allows prices to be expressed in terms of a single unit, making it easier for individuals to compare the value of different goods and make informed decisions about their consumption and investment choices. In addition, money serves as a store o...
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