What Is Money?

What is money? Money is a tool we use to allocate resources in a society. Money serves multiple purposes, but from the perspective of government, which is the issuer of money, the purpose is to provide for the needs of government. Money is both a type of currency and a measure of value. There are no “natural” forms of currency (money things), including silver or gold. Any object can serve as a form of money, from rocks and sticks to cigarettes and gum, or from paper bills and coins to electronic records and coupons. What lies beyond the currency is the willingness of others to accept that form of currency.

What is Economics?

Economics is the study of how societies allocate limited resources (such as land, water, human labor, or machinery) among the wants of those societies, recognizing that wants are seemingly unlimited.