Chapter 3

Money

A Medium of Exchange, Unit of Account, and Store of Wealth

Abstract

Money is a medium of exchange, a unit of account, and a store of value. Traditionally, it has been minted from metals, and later printed on paper. More recently, it exists as electronic entries on institutional accounts. It’s called a Dollar, a Pound, a Euro, a Yen. The payments function of money has progressed from hard currency to paper checks to plastic credit and debit cards. And now it enters a new fertile phase of Fintech disruption. Payments innovations such as Apple Pay, M-Pesa, Square, and Venmo are widely used. Cryptocurrencies such as Bitcoin and Ethereum have been developed with expanding ecosystems and ardent supporters. Skeptics are not so sure of ...

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