Money

The commodity that serves as a general equivalent in a fixed manner, the spontaneous product of the long development of the process of commodity exchange. Money was initially made of precious metals such as gold. As a fixed general equivalent, the value of all commodities is expressed through money; it is a representative of value and can be exchanged with all commodities and expresses the value of all commodities. Money cannot express its own value; it can only express its value through the various commodities with which it is exchanged. Hence, in the exchange of money with other commodities, other commodities become particular equivalents of money, and is and is a particular commodity with particular natural properties and particular use-value. As a general equivalent that expresses the value of all commodities, money becomes a universally applicable general commodity. Marx clearly pointed out that since all other commodities are merely particular equivalents of money, the latter being their universal equivalent, they relate to money as particular commodities relate to the universal commodity.

As a fixed general equivalent, money is conducive to the conduct and development of commodity exchange and has particular social properties and functions. In a developed commodity economy or a market economy, money has five basic functions: measure of value, means of circulation, means of hoarding, means of payment, and world money.