The Role of Money in the Economy

This video covers the following learning objectives:

✅ Define money and explain its core functions:

• Medium of Exchange

• Unit of Account

• Store of Value

✅ Differentiate between money supply measures:

• M1 (currency + demand deposits)

• M2 (M1 + savings + small time deposits)

✅ Use Excel to calculate and visualize money supply breakdowns.

✅ Explain how money facilitates specialization, trade, and complex economic systems.

✅ Analyze the relationship between money supply growth, inflation, and economic stability using real-world examples and Excel data.

✅ Apply knowledge to both certification exams and practical financial decision-making.