Explain Like I'm Five: How monetary system works?

Okay! Imagine you have a big box of toys and your friend wants to play with some of them. Instead of giving them away forever, you make a special rule: your friend can borrow the toys, but they have to give you something in return, like candy. In the world of money, we have something similar. Instead of toys, we have money, and instead of candy, we have goods and services. Here’s how it works: 1. **Money is like a toy**: Just like your toys can be shared, money is something everyone uses to trade for what they want or need. 2. **Banks are like your box**: The bank keeps money safe, just like your box keeps your toys safe. People can put their money in the bank, and when they need it, they can take it out. 3. **Loans are like borrowing toys**: If someone wants to buy a toy (like a new bike) but doesn’t have enough money, they can ask the bank for some money (just like borrowing toys). They promise to pay back the bank later, usually with a little extra (like giving back more candy). 4. **Prices are like points in a game**: When you trade your toys, each toy might be worth different amounts. In money, we have prices for things, which tell us how much money we need to pay to get something. 5. **Everyone uses money to trade**: Just like everyone knows the rules of your toy game, everyone knows how to use money to trade for what they want. This makes it easier for everyone to get what they need. So, the monetary system is like a big toy-sharing game, where everyone uses money to trade for things they want, and banks help keep that money safe and lend it when needed!