What Is Money?

  1. Objective 16-1 Define money and identify the different forms that it takes in the nation’s money supply.

If someone asks you how much money you have, do you count the dollar bills and coins in your pockets? Do you include your checking and savings accounts? Do you check your balance in Apple Pay or a similar digital payment option? What about stocks and bonds? Do you count your car? Taken together, the value of all these combined is your personal wealth. Not all of it, however, is “money.” This section considers more precisely what money is and what it does.

The Characteristics of Money

Modern money generally takes the forms of stamped metal or printed paper issued by governments. Theoretically, however, just about anything ...

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