AP macroeconomics part 1 video response

In this video I learned that there are 3 types of money. Commodity money is when things are being used as money that can have other purposes like people in Africa using cows for money because cows can have other uses. Representative money is when the money represents something like gold. The last type is Fiat money which has value only because the government says so. Money also has 3 functions which are as a medium of exchange, as a store of value and as a unit of account. A medium of exchange is what we use money for on a daily basis, which is to exchange it for goods and services. a store of value means that when you save the $1000 today in the next few years it will still be worth the same amount. A unit of account means that people associate the price of an object with its worth or quality.