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What is the power of money?

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Money allows people to exchange goods and services with one another, facilitating trade and commerce.

Exchange

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Money serves as a standard of value, allowing people to compare the relative values of different goods and services.

Standard of value

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Money can be saved and used at a later time, allowing people to plan for the future and save for emergencies.

Store of value

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Money serves as a unit of account, allowing people to quantify and compare the values of different goods and services.

Unit of account

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Money serves as a medium of exchange, allowing people to buy and sell goods and services without having to barter directly.

Medium of exchange

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Money can be used to make deferred payments, allowing people to borrow and lend money and engage in financial transactions.

Standard of deferred payment

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Money allows people to specialize in certain fields and trade with others, leading to increased efficiency and productivity.

Facilitates specialization

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Money reduces transaction costs, as it is easier to exchange money than to barter goods and services directly.

Reduces transaction costs

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A stable monetary system can help to promote economic stability and reduce the risk of economic crises.

Increases economic stability

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Money allows people to move freely between different jobs and locations, increasing economic mobility and opportunity.

Increases economic mobility

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