How Money Works

# How Money Works

## Part I: The Basics of Money
- What is Money?
  - Definition and Functions
  - Historical Evolution of Money
  - Types of Money (Commodity, Fiat, Digital)
- The Role of Money in Society
  - Medium of Exchange
  - Unit of Account
  - Store of Value
- Money Creation
  - How Banks Create Money
  - Central Banks and Monetary Policy
  - Fractional Reserve Banking

## Part II: Financial Systems and Institutions
- Banking System
  - Commercial Banks
  - Investment Banks
  - Shadow Banking
- Financial Markets
  - Stock Markets
  - Bond Markets
  - Derivatives and Commodities
- Regulatory Framework
  - Role of Financial Regulators
  - International Financial Institutions (IMF, World Bank)
  - Financial Crises and Lessons Learned

## Part III: Personal Finance
- Budgeting and Saving
  - Creating a Budget
  - Importance of Saving
  - Emergency Funds
- Investing
  - Types of Investments (Stocks, Bonds, Real Estate)
  - Risk and Return
  - Building a Diversified Portfolio
- Debt Management
  - Understanding Credit
  - Managing Loans and Mortgages
  - Avoiding Debt Traps

## Part IV: Global Economy and Money
- International Trade
  - Balance of Payments
  - Exchange Rates
  - Trade Agreements and Tariffs
- Global Financial Systems
  - Currency Systems (Fixed vs. Floating)
  - The Role of the US Dollar
  - Cryptocurrencies and the Future of Money
- Economic Inequality
  - Wealth Distribution
  - Impact of Globalization
  - Policies to Address Inequality

## Part V: The Future of Money
- Technological Innovations
  - Blockchain and Cryptocurrencies
  - Mobile Banking and Fintech
  - Central Bank Digital Currencies (CBDCs)
- Environmental and Social Considerations
  - Sustainable Finance
  - Ethical Investing
  - The Role of Money in Climate Change
- The Changing Nature of Work and Money
  - Gig Economy and Freelancing
  - Universal Basic Income (UBI)
  - Automation and Financial Security