Money serves as a medium of exchange that allows economies to function efficiently, replacing the limitations of direct bartering.
Before currency existed, societies relied on bartering. Early forms of money included shells, salt, and precious metals.
An economy consists of the production, distribution, and consumption of goods and services within a society.
Inflation refers to the general rise in prices over time, reducing the purchasing power of money.
International trade allows countries to specialize in producing goods efficiently and exchange them with other nations.