Boss Money

Money is any item that is customarily accepted as payment for various goods and services in a certain country. It can also be used as repayment for debts in a socio-economic context. In general, any item that can serve as a medium of exchange, a store of value, or a unit of account can be considered as money.

When it comes to a particular country, money supply is comprised of currency (i.e., banknotes and coins) as well as bank money (which is the balance that is held in checking accounts and savings accounts). Bank money is comprised only of records, and it forms the biggest part of broad money in industrialized countries.

Historians say that the term “money” originated from a temple of Hera (the Greek goddess of women and marriage), which is situated in Capitoline Hill between the Forum and the Campus Martius. In the ancient world, the Greek goddess was usually associated with money. In the modern world, “specie” is a common term for coin-money, which comes from the Latin words “in specie” (“in kind”).

When money is utilized to intermediate the exchange of products and services, it acts as a medium of exchange. Therefore, it avoids the inefficiencies of a barter system, such as the issue known as "double coincidence of wants". Perhaps the most important use of money is serving as a means for comparing the values of objects that are not similar to each other.

In economics, the word “money” is actually a broad terminology that refers to any type of financial instrument that serves the basic functions of money. Collectively, financial instruments are known as the money supply of an economy. Thus, the money supply is the actual amount of financial instruments within a particular economy available for buying products or services.