What is money used in exchange for goods and services referred to as?

The term used to describe money in exchange for goods and services is "currency." Currency serves as a medium of exchange, facilitating transactions between buyers and sellers. Its primary function is to provide a standard measure of value, allowing individuals to compare the value of different goods and services and engage in trade effectively.

In economic terms, currency is essential because it removes the inefficiencies associated with barter systems, where direct exchange of goods and services is required. Instead, with currency, participants can buy or sell items without needing to find a direct match for their wants, thus streamlining commerce and promoting economic growth.

While "asset" refers to resources owned that have economic value, "equity" pertains specifically to ownership in a company or property, typically represented by shares. "Payment," on the other hand, is a broader term that encompasses the act of transferring currency, but does not specifically denote the form that currency takes in transactions. Therefore, currency stands out as the most precise term for the money used in these exchanges.