News Coin - Concept, Meaning, Definition Together With Functions
Money is 1 of the greatest inventions of mankind.
According to Walker,
"Money is what Money does."
In a wider sense, Money includes all mediums of exchanges similar Gold, Silver, Copper, Paper, Cheques, in addition to Bills of exchange, etc.
Definition of Money
According to Crowther,
"Anything that is to a greater extent than frequently than non acceptable equally a way of telephone commutation in addition to which at the same fourth dimension acts equally a mensurate in addition to shop of value."
Thus, Anything is Money, which is to a greater extent than frequently than non acceptable equally a medium of exchange, in addition to at the same fourth dimension it must deed equally a mensurate in addition to a shop of value. Anything implies a affair to move used equally coin ask non move necessarily composed of whatsoever precious metal. The solely necessary status is that, it should move universally accepted past times people equally a medium of exchange.
Functions of Money
Money performs 5 of import functions:
1. Medium of Exchange: Money acts equally a medium of telephone commutation equally it's to a greater extent than frequently than non accepted. On the payment of money, purchase of goods in addition to services tin move made i.e. goods in addition to services are exchanged for money. Money bifurcates buying in addition to selling activities separately in addition to hence it facilitates the telephone commutation transactions.
2. Measure of Value: Money is a mutual mensurate of value in addition to hence it is possible to arrive at upward one's heed the charge per unit of measurement of telephone commutation betwixt diverse goods in addition to services purchased past times the people. Exchange value of commodity tin move expressed inwards terms of money. For e.g. nosotros tin enjoin that 10 metres of Cotton Cloth terms $220 dollars or Rs.10,000 rupees only.
3. Store of Value: Money acts equally a shop of value. Money beingness to a greater extent than frequently than non acceptable in addition to its value beingness to a greater extent than or less stable, it is ideal for utilisation equally a shop of value. Being non-perishable in addition to equally good comparatively stable inwards value, the value of other assets tin move stored inwards the flat of money. Property tin move sold in addition to its value tin move held inwards coin in addition to converted into other assets equally in addition to when necessary.
4. Standard or Deferred Payment: Money is equally good inevitably used equally the unit of measurement inwards terms of which all futurity or deferred payments are stated. Future transactions tin move carried on inwards terms of money. The loans, which are taken at present, tin move repaid inwards coin inwards the future. The value of the futurity payments is regulated past times money.
5. Transfer of Value: Value of whatsoever property tin move transferred from 1 individual to or in addition to hence other or to whatsoever establishment or to whatsoever house past times transferring money. The transfer of coin tin bring house irrespective of places, fourth dimension in addition to circumstances. Transfer of purchasing power, which is necessary inwards commerce in addition to other transactions, has move available because of money.