Money and Its Core Functions in a Modern-Day Economy

The video explores the role and evolution of money in the economy, highlighting its core functions: medium of exchange, store of value, and unit of account. It traces the history from barter systems to modern fiat money, discussing the characteristics that make money effective. The video also examines the impact of cryptocurrencies like Bitcoin on traditional monetary systems.

Discuss the importance of the unit of account function of money.

What role does a central bank play in regulating money supply?

How does liquidity affect the classification of assets as money?

In what ways do cryptocurrencies like Bitcoin challenge traditional functions of money?