What Is Money?

Money is a system people use to store, measure, and exchange value so they can trade without needing direct barter. It usually takes the form of coins, paper bills, or digital balances recorded in bank and payment systems. Good money is widely accepted, durable, portable, and easy to divide into smaller units. Modern economies rely on government-issued fiat money that has value because people trust institutions and laws behind it. Money also acts as a unit of account, letting businesses price goods and keep financial records. Beyond economics, money influences power, opportunity, and social relationships.