Scientific Article..

Money and Its Importance in the Life of Nations

Money is a social instrument invented by humans throughout their civilizational journey to facilitate the means of life. For this reason, its study has become increasingly important and intriguing due to its close connection with economic activity and the far-reaching effects it produces on the movement of economic, social, political, and behavioral factors. Every issue in life has its monetary dimension, and addressing it often requires monetary measures. Therefore, the management of monetary policy has always been a central focus in intellectual debates related to social policy and its various branches.

Money is one of the material assets, and thus it cannot be separated from other assets if we are to understand the overall behavior of the financial system and the high degree of flexibility required in the movement of financial balances to achieve profit. Moreover, some of these assets serve as policy tools used by monetary authorities to regulate the money supply and to direct the economic variables that influence the life of society and its decisions.

While money provides significant benefits, it also carries social costs that impact economic stability and social justice. It is linked to numerous variables that influence society, the national economy, and its performance level. The study of money is organically connected to the role of the banking system in economic activity, as banks represent the most important financial intermediaries. They provide essential channels that link savers with investors and play a vital role in determining the money supply.