... exchange rate. The former problem is known by economists as a "double coincidence of wants", whilst the latter demonstrates the hassle of having to know relative prices, not only for apples and hammers, but also for every other good or service in the market. If, however, one good becomes the numeraire good, and the value of every other good or service was measured in relation to it, transactions will be made much more easily. This numeraire good would become the money of the economy. To be effective, money will have to fulfil some or, preferably, all of the following. It must be accepted as a unit of account and a means of exchange or payment, be durable, scarce, easily dividable, and stable in value. In modern societies, coins and notes (token money) are obvious forms of money, but money, and the money supply, takes on more forms than just these. Hard currency, ...

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