Money . . Meaning Money is anything that is generally accepted as payment for goods and services and repayment of debts and that serves as a medium of exchange. A medium of exchange is anything that is widely accepted as a means of payments.
In recent years, the importance of credit has increased in all the countries of the world. Credit instruments are used on an extensive scale. The use of cheques, bills of exchange, etc. has gone up.
It should however, be remembered that money is the basis of credit. - - Monetary Economics . . Definitions Many economists developed definition for money.
Among these, definitions of Walker and Crowther are given below: “ Money is, what money does” - Walker. “Money can be anything that is generally acceptable as a means of exchange and at the same time acts as a measure and a store of value”. –Crowther . .
Evolution of Money Barter System The introduction of money as a medium of exchange was one of the greatest inventions of mankind. Before money was invented, exchange took place by Barter, that is, commodities and services were directly exchanged for other commodities and services. Under the barter system, buyers and sellers of commodities had to face a number of difficulties. Surplus goods were exchanged for money which in turn was exchanged for other needed goods.
Goods like furs, skins, salt, rice, wheat, utensils, weapons, etc. were commonly used as money. Such exchange of goods for goods was known as “Barter Exchange” or “Barter System”.