People consider money as an economic element that functions as a medium of exchange intended for transactional commitments in an economy. It provides the service of decreasing transaction costs, specifically the double concurrence of wants.

In order to be most useful as money, a currency should be

  • Fungible
  • Durable
  • Stable
  • Portable
  • Recognizable

Generally, people accept, recognize, and centralize money as a medium of exchange in an economy. They use it to facilitate transactional trade not only for goods but for services as well.