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Definition and Meaning of Money

The inconveniences of the barter system led to think about the commodity that could be the medium of exchange. This led to the invention of money. There is a controversy among economists as to the place and nature of the origin of money, but money was in existence from ancient times. Different things were used as money at different times in history.

Money is increasing

In primitive Agricultural societies, cattle were used as money. In the process of developing animal skins, precious stones, price, etc were also used as money. With the growth of society metallic money like Iron, Copper, Gold also acted as money. Add business activities expanded, metallic money was also found as inconvenient and paper money was introduced. In modern society, people feel difficulties in large payments through paper notes so cheques, drafts, bills of exchange are used as money.

The first known paper currency appeared in China. In all, China experienced over 500 years of early paper money, from the 9th century. Over this period, paper notes grew in production, and their value rapidly depreciated and inflation soared. then beginning in 1455, the use of paper money in China disappeared for several hundred years. This was still many years before paper currency would reappear in Europe and three centuries before it was considered common.

Meaning and Definition of Money

Money is any marketable good or token used by a society as a store of value, a medium of exchange, or a unit of account. Since design themes are used as money the definition of money is not unanimous, and different economics define money differently.

Crowther: " Anything that is generally accepted as a means of exchange and at the same time, acts as a measure, and as a store of value".

Seligman: " Money is one thing that proceeds general acceptability"'

Kent: " anything which is commonly used and generally accepted as a medium of exchange or as a standard of value."

Robertson: " Money is anything which is widely accepted in payment for goods or in the discharge of other kinds of business obligations."

The definition of money given by Crowther may be considered a comprehensive definition as it focused on the general acceptability, medium of exchange, measuring value, and store value of money. Money is Generally Accepted because the Monetary Authority from promised for its value.

Thus money is a legal tender that has acceptability as a medium of exchange, major any of the value, and is used in the settlement of debts.

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