What is money
Money serves as
- a store of value, which means people can save it and use it later (basically a promise)
- Medium of exchange something that people can use to buy and sell from one another (token that can be exchanged for something)
- Unit of account thatis , provide a common base of prices
Effect of Money
If there was no money we would have to go back to a barter economy (trading with each other basically, 5 apples for 1 egg for example)
This would be bad as it would be difficult to find specific people to trade with
With money you don’t need to find a specific person you can sell your goods / services for a piece of paper that promises monetary value
How to make money we are going to find out by Making Money