Money is a medium of exchange as payment for goods and services. The main features of money are stability, movability, divisibility, uniformity, restricted supply, and acceptability.
Definition of money?
The concept of money come from the Latin word ‘moneta’, mean coin and it is French is monnaie. So we can say Money i
Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context.
The earlier coin was barter, and it was used at least 6000 B. C. Barter (commodity money) system is a use to trade of goods and services. For example a wheat farmer exchange his produced goods to the producer of rice. are more than halfway through.
Function of money
Medium of exchangeMoney is a unit of accountMoney as a store value
Characteristics of money
Divisibility. We can divide money into its exchanged as denomination
Durability. Money is durable. As its value remain intact
Portability. The money or currency can be easily be carry.
Limited supply. It has a limited supply
Uniformity. The value of the money will be uniform throughout the one’s country
Acceptability. All government and its central bank protect its value and it is accepted by the people