A store of wealth refers to an asset's ability to hold onto its value over time. Just like a sturdy container protects your belongings, a good store of wealth safeguards your purchasing power for the future. Money plays a vital role in our modern
Money
Purchasing Power of Money Explained: How Much You Can Buy (Inflation’s Impact)
What's it: The purchasing power of money is a currency's ability to convert it to goods and services. In other words, it is the conversion rate of money towards goods and services. Another term for the purchasing power of money is the real value of
Unit of Account: Measuring Value (Why Money Matters)
The concept of "Unit of Account" sits at the very foundation of any economy. It's the common language we use to measure the value of everything we buy, sell, or own. Just like a ruler helps us measure the length in centimeters or inches, money, as a
Money: Functions, Types, Demand & Supply
What's it: Money is everything we use or accept widely as a means of payment for goods and services, including coins and banknotes. It also functions as a unit of account and a store of value. It replaces barter payments in the modern
Real Money vs Nominal Money: Understanding Value & Inflation
Real money might seem like a straightforward concept – the cash you hold in your wallet or the bills you use for everyday purchases. But there's more to the story than meets the eye. Real money, issued by a central bank, acts as legal tender within a
Money Creation Explained: How Banks Create Money
Money creation is the process by which the money supply in an economy expands. It's a fascinating concept that underpins economic activity and influences everything from interest rates to inflation. But how exactly does money get created? This guide
Paper Money: History, Pros & Cons (Is it Going Away?)
Paper money, the familiar bills and notes you carry in your wallet, has a rich history and plays a vital role in our everyday lives. While the concept of money itself stretches back millennia, paper money emerged as a revolutionary way to conduct
Money as a Store of Value (Pros & Cons) | Inflation & Alternatives
Money, as a store of value, plays a crucial role in any economy. It allows us to save and accumulate purchasing power today, confident that it will retain its worth when we need it in the future. This ability to preserve value over time is essential