Basics of Money

What is Money?
The answer to the question is simple. Money is anything widely used for paying debts owed by a person to someone else and also for receiving the payments of debts owing to a person from someone else. A country produces coins and banknotes, (accepted by everyone) for the payment of bills and for the receipt of money owing.
" Money is known as a medium of exchange because it facilitates the exchange of goods and services between buyer and seller..."

Money is what is known as a “medium of exchange”.

In the “old days" people traded the goods and services they owned (and probably produced) for goods and services owned by others (probably produced by them). The scenario went something like this – “you give me two sacks of your potatoes and I will trade you ten of my fish”.

This method of trading was fine for a while. As soci...

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