Outcome: Defining Money

What you’ll learn to do: define money, explain the functions of money, and define liquidity

You use money nearly every day, but in this section, you will take a deeper look at what money really is—what it represents, why it has value, and what purpose it serves.


The learning activities for this section include:

  • Reading: Introduction to Money and Banking
  • Reading: Defining Money by Its Functions
  • Reading: Measuring Money: Currency, M1, And M2
  • Video: What is Money?
  • Self Check: Defining Money

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.