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Description: A medium of exchange is an intermediary instrument or system to facilitate the purchase and sale of goods and services between parties.

Real World Example: When you pay a cashier at a grocery store with cash to buy groceries.

Pros: A medium of exchange works if its value is immediately recognizable, reasonably stable, and portable.

Cons:The value of money as a medium exchange fluctuates owing to inflation.

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Description:A Store of Value is an asset, commodity, currency that maintains its value without depreciating.

Real World Example:A nation's money must be a credible store of value in order for its citizens.

Pros: Money's value can be better predicted when someone wants to use it in the future.

Cons: Inflation eating away at the currency's value and banking with money earns little in the way of returns.

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Description:Meaning that money is divisible, countable, and fungible.

Real World Example: An individual that has oranges to sell and wants a haircut can sell oranges to one person and obtain money which they can then exchange for a haircut; rather having to find someone willing to provide a haircut in exchange for oranges.

Pros:Simplified price comparison, efficient accounting, credit and debt management etc.

Cons:Not being stable in real value over time.

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Description: If you're an hourly employee, you're paid for all the hours you work.

Real World Example: An employee may be offered $15 per hour for full time employment.

Pros: They may have an easier time separating work and home life. You can also more easily reduce workers' hours if needed.

Cons: Higher turnover rates.

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Description: A salary is a fixed wage. It's often cited on a annual basis and paid biweekly.

Real World Example:An employee generally has to earn at least $684 per week or $35,568 per year to be paid on a salary basis, and they must perform exempt duties.

Pros:a salary typically comes with benefits, such as healthcare coverage, paid vacation, and sick days.

Cons: No overtime pay, more demanding work, and difficulty separating work and personal life.

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Description:Is a large portion of total income for workers in certain industries.

Pros:Can earn money each day they work, rather than waiting for a paycheck every week or two.

Cons: Is less stable and certain than wages, and brings social pressure from co-workers to under-report that income.

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Description: A self-employed person or entity contracted to perform work-or provide services to-another entity as a non-employee.

Pros: Flexibility, control, and tax benefits.

Cons:Inconsistent income, administrative tasks, and limited benefits.

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Description:Are the percentage of a company's earnings that is paid to its shareholders as their share of the profits.

Pros: The income they provide can help investors meet liquidity needs.

Cons:Some potential tax extra burdens, especially for investors who live off the income.

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Description:Refers to the increase in the value of a capital asset that is realized when it is sold.

Pros:They are lower than ordinary income taxes, providing a tax advantage to many taxpayers, including homeowners and investors.

Cons:Higher tax rates may discourage people from investing in assets, leading to slower economic growth.

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Description: Is a digital or virtual currency secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.

Pros:Cryptocurrency is a volatile investment, but in the long term, many coins have risen in value considerably. Bitcoin's price has increased roughly tenfold over the last five years, despite several bull and bear markets over that time. It topped $100,000 for the first time in December 2024, although it has since fallen below that level.

Cons:Many cryptocurrency projects are untested, and blockchain technology in general has yet to gain wide adoption. If the underlying idea behind cryptocurrency does not reach its potential, long-term investors may never see the returns they hoped for.