Money is one of the important concepts, This section talks about money from the perspective of microeconomics.when people exchange goods and services without using money, this is called barter. "I'll cook dinner if you'll do the dishes" is an example of barter. Imagine an economy in wich i can sell services as a consultant to banks, but what i want is to buy a new suit. the clothing store that sell suits does not have any use for my services as a banking consultant. i sell consulting services for money, and i buy a suit using money. money serves as a medium of exchange. the bank does not sell suits. how can barter work?
If we were still using the barter system in doing exchange, then there wouldnt be anything like banks. We have banks because of the current way we do exchange. Everything now has values and instead of you exchanging what you have for what you dont have you make use of money to buy and also keeping the things you have.