Money Economies
Definition
A money economy is a system where goods and services are directly exchanged for currency or coins, rather than through barter.
Analogy
Think of a money economy like an amusement park. Instead of trading your cotton candy for a ride on the roller coaster (barter), you use tokens (money) that can be exchanged for any ride or treat in the park.
Related terms
Currency: The system of money in general use in a particular country.
Barter System: An old method of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money.
Trade: The action of buying and selling goods and services.
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