Money

Money has become so much a part of our day to day activity that we have started to take it for granted. The complex economic system stands on the base of money because money is something which generally accepted as a medium of exchange.

Before the existence of money in this world there was barter system; an economic system in which goods and services were directly exchanged with goods and services. Difficulties like; lack of double coincidence of wants, lack of divisibility, lack of store of value, lack of common measure of value, limited specialization etc. in the barter system induced people to find a better way of exchange and ultimately led to invention of money which remove all the shortcomings and made the economic system very fast and productive.

The word money refers to that commodity which performs as the medium to exchange of goods and services, measuring value to factors of production, goods/services, common and useful means of credit transaction in business society and having quality of store of value of goods/services in the form of cash.

According to Hawtrey;” Money has two sides first it is a unit of account and second it is legal tender.”

According to Prof. Coalborn;” Money is the means of valuation and payment as both the unit of account and generally acceptable medium of exchange.”

According to Crowther;” Anything that is generally acceptable as a means of exchange and that at the same time acts as a measure and store of value.”