Functions of money | Financial sector | AP Macroeconomics | Khan Academy

What does money actually do? Economists usually subdivide its functions into three categories: A medium of exchange, a store of value, and a unit of value. Created by Grant Sanderson.

AP Macroeconomics on Khan Academy: Welcome to Economics! In this lesson we'll define Economic and introduce some of the fundamental tools and perspectives economists use to understand the world around us!

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[hebikoo]

I am pretty sure that the 4th function is ''money as a standard of deferred payments'' and it is basically where money lets you buy now and pay later or lends u and collect later a better example is investment.
Also thank you for explaining this made it so much easier to understand!

[pavimaris]

Who here came from Anton Kreil's video?

[ugochukwukenechukwu]

This was very relatable and underatandable. Thank you.

[GiovanniMinto]

I've been watching hundreds of videos listening to sal's voice .
This guys is very good as well but i'ts still a little bit of a shock

[TakyinZhang]

I learnt this when i was primary four😢

[nikolairose]

Second. I deserve a medal now. I want it now.

[peternyava]

How the creation of money build or break an economy?

[linoflaviodemagistris]

But our currency does not store value, therefore we can not call them money but currency.

[luckylui]

Thanks for the video but I have found that some of segments pertaining to money are very outdated. Without intending to come off as being critical I would argue that the only real function of money is a unit of measure, used to measure your stack and prices relative to all goods and services available for purchase in a given unit of measure i.e. dollars. Medium exchange is the definition of money so it is redundant. Store of value is rooted in the fable of the barter economy (which, erroneously, according to some economic schools, is where money evolved from). Store of value assumes the colorful paper, or digits in a computer, somehow have intrinsic value in and of itself (equal to the denomination of the unit). Which, also erroneously, implies monetary transactions are value for value exchanges, like barter (by no coincidence). Further, intrinsic value conflates purchasing power indirectly with inflation (which can mean different things but often implies monetary inflation in the context of money). Whether or not money maintains its purchasing power is a completely separate subject and not an inherent function. Money is a derivative to value (read: real goods and services people desire), you could go as far as to say it is a claim on future purchases but even that is a stretch upon close examination. My main issue is with "store of value" because a lot of economic BS is cloaked in this notion, namely the commodity theory of money (read money, a human construct, is supposedly scarce and has intrinsic value). Once you come to terms with this and how money is actually created much of the whole economic system comes into question. I digress.

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[ankurmazumder]

did not know that "PI"s are also good with economics .XD

[susomedin]

Has never existed a barter economy and money didnt evolve from such barter.

There is not a single case of society based in barter.

Thats a very well know FACT by all antropologist.

[tuckervskele]

Initnoflaveule is Indian congress and chit chip chap gives enough sim money sings

[tuckervskele]

Ouch viiith George alibaba 1122998 coins of Erabic gold. well this one up aye aye aye quran oxford oxford oxford. Buckingham Pleganthro boat for Camp khan.