What is money?

Money is a tool used to buy goods and services and to measure value. Money is usually in the form of precious metals or paper used as a means of payment.

Money can be of different types, such as cash held in the hand or in a bank account, electronic means of payment such as credit cards, debit cards, e-wallets, cryptocurrencies, etc.

Money is important in the economy because it enables trade and commerce. Money also measures the value of goods and services and allows us to assess how much one good or service costs compared to another. Money is also a universal tool that can be used in different countries and in different sectors.

In addition to its basic functions as a tool for trading and measuring value, money can also be an asset that can earn interest or income through investment. Money can also be a risk factor, as its value can fluctuate depending on economic conditions, inflation and other factors. It is therefore important that people understand the nature of money and how to handle it properly to ensure their financial stability and sense of security.

Here are some links where you can read more about money:

  1. Investor.ee: What is money? - Welcome to the investor page, where you can learn all about investing.
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