Money as a Tool

The main functions of money are as a medium of exchange, a unit of account, and a store of value.

Nearly all contemporary money systems are based on fiat money, which is modern currency that has value only by government order.

In economics, the money supply or money stock, is the total amount of money available in an economy at a specific time.

A nation's money supply is determined by the monetary policy actions of its central bank.

The foreign exchange market is a form of exchange for international currencies that determines the relative values of different currencies.