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Money transformed the entire idea of the barter system. A medium of exchange for goods and services for centuries, money keeps matters of the world in a flow, helps countries exchange goods and services, store wealth and develop friendly relationships. See: 3 Ways to Recession Proof Your Retirement Typically, every country has a central bank that regulates and publishes the money supply data in coordination with the government. Money is present in various forms: physical -- coins, notes -- and virtual -- electronic bank accounts, cryptocurrencies. This makes it hard to determine how much money exists in the world right now. What Are Different Types of Money? Economists divide money into categories based primarily on how liquid it is, according to the Federal Reserve Bank of Richmond. The range starts at the narrowest and most liquid with M0 and, in the U.S., goes up to the broadest and least liquid, M3. Each M level includes the levels that precede it, so M3 includes M0, M1 and M2.
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