Chapter 29

Chapter 29 really goes in depth on the meaning of money, because really these wrinkly pieces of paper don't have real intrinsic value. It's value is from the government setting it as the national currency. This is called fiat money. By using money we are better able to allocate our resources,  otherwise we would have to barter for something of immediate value instead of trusting the object we are getting can be traded later for something of value. Money has three functions. It is a medium of exchange, meaning it can be traded for things of value. It is a unit of account, meaning it is used to place a value on things being sold. And lastly it is a store of value, meaning its purchasing power can be transferred from the present to the future. I'd give this chapter a 1 out of 3 so far. There is a lot of new information, but it is pretty easy to understand.