Newsminute Economics: #2 What Is Money

Hi again, I’m Professor Tigger. And on today’s show, we’re going to be talking about the very basics of the economy, also something that we use every day: Money.

Let me first define the word “money.” It could be just about anything that we use to exchange for something else. Though usually, every country uses some uniform money called a “currency.” But money wasn’t always called “money.” Many years ago, when banks got built, people would store their valuables, like gold and silver, in vaults. The banks would give people slips of paper, known as “banknotes,” to make exchanges easier. When someone comes back with the note and wants their money, the banknote will return to the bank, and the money gave to them. And now, most of the time, there’s no need for paper money or coins, because people mostly use electronic money!

So that money sitting in your wallet right now has actually “lived” for generations!