How Money Works

Money is a medium of exchange that facilitates trade and commerce. It serves three primary functions: as a unit of account, which helps measure the value of goods and services; as a store of value, which allows individuals to save purchasing power for future use; and as a medium of exchange, which simplifies transactions between buyers and sellers. Different forms of money, including coins, banknotes, and digital currency, have evolved over time to meet the needs of societies.