In my opinion,in most price system economies, money is a means of final payment for goods and also money can be defined as the unit of account in which prices are typically stated. It includes currency held by the non bank public and check able deposits. It has been described as a social convention, like language, useful to one largely because it is useful to others. Nowadays, it becomes very useful for us. Without money, it is very difficult to exchange goods.
Money facilitates trade as a medium of exchange. Its economic function can be contrasted with barter (non-monetary exchange). Given a diverse array of produced goods and specialized producers, barter may entail a hard-to-locate double coincidence of wants as to what is exchanged, say apples and a book. Money can reduce the transaction cost of exchange because of its ready acceptability. Then it is less costly for the seller to accept money in exchange, rather than what the buyer produces.
At the level of an economy, theory and evidence are consistent with a positive relationship running from the total money supply to the nominal value of total output and to the general price level. For this reason, management of the money supply is a key aspect of monetary policy.
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