What do we call an economy where goods are exchanged using money?

An economy where goods are exchanged using money is referred to as a market economy. This type of economy relies on the use of currency to facilitate transactions, allowing buyers and sellers to identify the value of goods and services through prices. In a market economy, the forces of supply and demand determine prices, which helps to allocate resources efficiently and meet consumer preferences.

In contrast, a non-cash exchange refers to barter systems where goods and services are traded directly without the use of money. Natural resources pertain to the materials or substances that occur in nature which can be used for economic gain but do not describe the method of exchange itself. Services are intangible products that fulfill needs or wants, but similarly, do not represent the overall economic system focused on monetary exchanges. Therefore, the term market economy accurately captures the essence of an economy where money is the medium of exchange.