CeFS

Money- 'Anything that is widely accepted as a means of making payments'

Specifically- coins, notes, electronic balances he;d in bank accounts

Main purpose: To make payments with, and fulfill other purposes as well. Sellers use money to set the price of goods- How much someone has to pay for it.

-People can store money and save it for future payments.

-Money allows those to purchase items now even if they don't have money themselves- Can borrow money and pay the lender in the future.

Before money was created, bartering was used to trade goods or services.

Limitations of barter system:

-Relies of 'double coincidence of wants'

-2 parties agreeing on a rate of exchange