Saturday, August 11, 2012

Class XI, Principles of Economics, "Definition of Money"

Definition of Money

“Money is some thing, which has general acceptability in the settlement of debt, or in transfer of ownership of goods and services in a country. The value of exchange of every thing in a country is expressed in terms of money.”

Mr. Robertson defines money in the following words

“Money is a commodity which is widely accepted in payment of goods or in discharge of other kinds of business obligation”.

An English economist Mr. Hawtrey observes that

“Money is one of those concepts which are definable primarily by the use or the purpose which they serve”.

In the words of Goh Cole,

“Money is purchasing power some thing that buys things”

According to Ely,

“Any thing that passes freely from hand to hand as a medium of exchange and is generally received in final discharge of debts”.

One of the simplest definitions of money is given by Mr. Walker who says that

“Money is what money does”.

In the light of the above definitions, it can be said that

“Any thing that is generally accepted as a means of exchange and at the same time acts as a measures and a store of value”.

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