Final answer:
The definition of money in economics is not fixed and can change based on different factors. It serves as a medium of exchange and has various functions. The price of money in financial markets is the rate of return or interest rate.
Step-by-step explanation:
In economics, the definition of money varies based on different factors. It is not fixed and can change over time due to the expected rate of return on productive assets and people's time preference for consumption. It is not determined by government regulations but is subjective and can vary from person to person.
Money is what people in a society regularly use to purchase and sell goods and services. It serves as a medium of exchange, a unit of account, a store of value, and a standard of deferred payment. The price of money in financial markets is the rate of return or interest rate received by the suppliers and demanders of financial capital.