The definition of money

1
The definition of money

• Anything that serves all three of the following
  functions qualifies as money
• Means of Payment or Medium of Exchange
• Unit of Account
• Store of Value

2
Types of Money

• Commodity money
• Convertible paper money
• Fiat Money
• Deposit Money

3
The most commonly-used money definition in the
U.S. is M2

• M1 includes
• Cash (fiat money)
• travelers checks
• checking deposits held by private individuals and
  businesses
• very liquid
• M2 includes M1 plus
• savings deposits
• time deposits valued under 100,000