What is money

3 functions: 1/ Medium of Exchange—promotes economic efficiency by minimizing the time spent in exchanging goods and services Must be easily standardized Must be widely accepted Must be divisible Must be easy to carry Must not deteriorate quickly 2/ Unit of Account—used to measure value in the economy: we measure the value of goods & services in terms of money. 3/ Store of Value— power - used to save purchasing power; most liquid of all assets (that why we want to keep money) but loses value during inflation ...