Money allows any payment or transaction to take place, for instance, when paying for goods or the services being offered (Lotz, & Zhang, 2016). Money had many functions. The essential functions may include; it allows for exchange, it is a store of value, it is an accounting unit, and lastly, it is helpful where it will enable payment to be done even when delayed.
Money allows exchange since it is used satisfactorily on the needs that may arise. As a unit of account, the term money is always present whenever the economy is discussed (Ammous, 2018). It's a store of value since it can be kept and used accordingly and lastly, it allows for deferred transactions.
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Commodities such as gold can be used as money. Here, since gold has its intrinsic value, then it means it can be used as money and hence used in making any transactions or payment. It would be very vital to not that credit cards are not money. However, they can be used as money. In this, they are used in buying goods and services. They act as a perfect representation of wealth. Credit cards cannot be considered as playing any role in the distribution of money in any particular economy (Lotz, & Zhang, 2016).
Inflation can result in cases where or when the growth being felt is lower than the supply of money. Industries end up raising the prices due to a high increase in the demand for this money. Output at the national level goes up the due money supply, leading to cases of unemployment affecting a country's economy (Ammous, 2018). The interest rates of a market go low when the money supply is high, this having an impact on the economy of a country and in this economic stability is rarely felt.
References
Ammous, S. (2018). Can cryptocurrencies fulfil the functions of money?. The Quarterly Review of Economics and Finance , 70 , 38-51.
Lotz, S., & Zhang, C. (2016). Money and credit as means of payment: A new monetarist approach. Journal of Economic Theory , 164 , 68-100
