In contemporary economies, money plays a crucial role as a medium of exchange, unit of account, store of value, benchmark for postponed payments, measure of worth, and enabler of global trade. An overview of the meaning and purposes of money is given in this chapter, emphasizing their importance in both economic theory and practice. The idea of money includes all of its uses, beginning with its use as a means of exchange. Barter systems are simplified by the use of money, enabling smooth transactions and boosting economic activity. It offers a widely accepted means of exchanging goods and services, fostering economic development and facilitating trade.
