Money is an item that people generally accept as payment for goods and services or to settle debt. It makes trade much easier by replacing the need for barter (trading goods directly for other goods).

Money serves three main functions in an economy:

• Medium of exchange: It is used to buy and sell products.
• Unit of account: It provides a standard way to measure the value of different items.
• Store of value: It can be saved and retrieved later to maintain purchasing power.