This allows the value of many different types of goods and services to be compared. Money serves as a medium of exchange. A medium of exchange is something that can be used to purchase goods and services and pay debts. When money functions as a medium of exchange, goods and services can be exchanged without resorting to barter. Money serves as a store of value.
Money is a way for households to store their savings.
The Money Supply 1. Money is anything generally accepted as final payment for goods, services, and debt. The nation's money supply is defined as currency, travelers' checks, demand deposits, and other checkable deposits. Other checkable deposits is the largest component of the money supply. This definition of the money supply is referred to as M1.