Chapter 29: The Monetary System

Cash may be considered to be a claim to goods and services in the future. Money can be considered to be wealth, or a set of assets in an economy that people regularly use for goods and services. Money may be a medium of exchange, an item that buyers give to sellers to purchase goods or services, a unit of account, "yardstick" to post prices and record debts, or a store of value an item that people can use to transfer purchasing power from the present to the future. Where liquidity is a main factor, or the ease with which an asset can be converted into the economy's medium of exchange. Like when the value of money falls due to a price rise. Money then can be considered to be commodity money, money that takes form with intrinsic value, it will still have value even if not used as money, like gold and cigarettes back in the day. Or fiat money, money without intrinsic value that are used as money due to government decree.