What is money?

Money is the measure of good and service value that is the general equivalent. In fact money is the cost of other goods and people exchange it on other goods. Money is the specific good that is the equivalent of goods value. Different things and services may be money. Usually the thing with great liquidity becomes money. It means things easy to exchange become money.

In the modern world money is not certain goods, as for example the gold in the past, but the commitment of the countries and the central bank. In fact without this commitment money is the paper and doesn't have any value. The base of money functions is the governmental power that guaranties and makes take money as the way of paying on the certain territory.

Money is the equivalent that is used by people to value certain good and service. There is the science that dedicates itself to money studying. Money is not so simple as it may seem. First of all there are laws that regulate its functions and its value. These laws are both the natural ones and the governmental.

And Economics studies these laws trying to make their functions better and to improve the economics of the certain country. That is why people can't make so much money to satisfy all needs of people.

The most spread cash money is dollar, euro, pound and several others bank notes of countries of Europe and Asia. This money also has equivalents to one another. As some money is more valuable than other, it is impossible to give one euro for one dollar. That is why there is exchange rate that regulates how many dollars costs one euro, etc.