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One of the most commonly asked questions in the field of economics is “What is money?” Money can be defined in a variety of ways, but fundamentally it is an object that is accepted as a medium of exchange by all participants in an economy. Money provides a unified platform to measure the exchange of goods and services, and provides a storage of value over time. Money can also be seen as a form of social agreement, as it is agreed upon by all parties that the money has a certain value and can be used for bartering. Thus, money provides the necessary foundation for a functional economy.

Short Answer

In short, money is an accepted form of exchange in an economy, serving as a measure of value and a storage of wealth. It also serves as an agreement between members of an economy, and provides the necessary foundation for economic transactions.

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