Money, Banking and the Economy.

Banks and the monies they administer play an invaluable role in a local, regional, national and even international economic system. Indeed, money is the driving force behind an economy. How it is managed and distributed within a given system is often the most pivotal issue facing developing as well as developed economies. In light of this fact, it is important to understand what money is and the role it plays. This paper will cast a more comprehensive light on the fundamental purposes of these two concepts and how money and banks positively and adversely impact an economy.