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Economics glossary · Policy and the financial sector

Money

What money means in economics, with an example and a question to test yourself.

Definition
Money
Money is what people regularly use when buying or selling goods and services, and so both buyers and sellers must widely accept it.
Not to be confused with: Wealth
Wealth is the total value of everything a person owns, from savings and shares to a house, after taking away what they owe.
Test yourself

What is the difference between money and wealth?

Learn it properly: the module

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