What Is Money? (The Three Jobs)
5 min readarticleIncludes quiz · 2 questions
Think of money like a Swiss Army knife for value - it needs to do three jobs well. Store of value (savings that don't spoil), medium of exchange (what people accept for stuff), and unit of account (the measuring stick for prices). If any job fails, people find something better.
Simple definitions:
- •Store of value: Keeps your buying power over time (savings that don't spoil).
- •Medium of exchange: What people accept for goods and services.
- •Unit of account: The measuring stick for prices (like inches for length).
Analogy: Think of money like a backpack for value. A good backpack should be sturdy (store value), easy to carry (exchange), and have clear labels (unit of account).
Test Your Knowledge
This lesson includes a 2-question quiz (passing score: 75%).
Quiz functionality available in the mobile app.