FinanceFix
Mariana San Martin Quiroz
Student of Abraham Lincoln Peruvian North American School - La Molina
Grade 9 - Class Elliot Ness
What is money?
According to Cambridge Dictionary, the word “money” refers to “coins or notes (= special pieces of paper) that are used to buy things, or an amount of these that a person has.”
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Although, money may be interpreted as the system that facilitates the exchange of goods in a known economy.
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Before our actual knowledge of what is money, in the ancient times commodities were the tool that served to a similar function. These goods and services were used to perform an exchange, in a system known as barter, were they exchange their possessions directly, but with actual undefined value.
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Then, their evolution saw a materialization to for example: gold, coins, bills, etc. All very well know by us. In contemporary markets, money may also include electronic crypto currencies. And the money we have can be stored in banks and institutions not only tangible but electronic ones.​
Money as we know is an asset used to facilitate the transaction of values. Used as a medium of exchange between individuals and entities. It stores a value and as that, the value of the goods is measured. Money refers to an intangible system of value that makes them possible.​
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As economies became more complex with the evolution of our societies, money was standardized into currencies, that simply refers to one tangible form of money, and varies from each geographical context, historical context, etc.