Section 1
Money as a Tool
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Version 6
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Boundless Business
Business
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5 concepts
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Functions of Money
The main functions of money are as a medium of exchange, a unit of account, and a store of value.
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Types of Currency
Nearly all contemporary money systems are based on fiat money, which is modern currency that has value only by government order.
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Measuring the Money Supply
In economics, the money supply or money stock, is the total amount of money available in an economy at a specific time.
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Control of the Money Supply
A nation's money supply is determined by the monetary policy actions of its central bank.
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International Exchange of Money
The foreign exchange market is a form of exchange for international currencies that determines the relative values of different currencies.