Money

                                          MONEY               

After studying this post,You should be able to:

                                                         *Define Money

                                                          *Trace origin of Money

                                                          *Classify Money under different traits 

  

The evolution of civilization has leads to the evolution of money.Skins of animals were as money during hunting stage.Cattle were used as money during pastoral stage.In agricultural period wheat and other food items were used as money. 

During barter stage people exchange surplus of money.Stones,shells,grains,fruits and tools were used as money after barter stage.With the passage of time different metals like iron,copper and bronze were used.Them precious metals like silver and gold replaced the old things.Later on paper money was put into practice.

 The development of banking system introduced credit money like cheque,bills of exchange,and promissory notes.At present metallic money,paper money like credit money is being used.The banks are introducing plastic money like credit card,visa card and cheque card etc.The money to be used in future depends upon the time.


DEFINITION:

1.F.A Walker says that money is that money does.

2.Richard Ely says that money is any thing that passes freely from hand-to hand as a

    medium of exchanges and is generally received in the final discharge of debts.

3.R.P Kent says that money is any thing.Which is commonly used and generally accepted as medium of exchange or as a standard of value.

4.G.N Halm says that money has been used to designate the medium or exchange as well as the standard of value.

         5.Knapp says that is anything,which is declared,as money by government becomes money.

"It is clear that money may be anything like metal,coin and paper.It must be commonly used and generally accepted by people moreover the government should approve it."

ORIGIN OF MONEY:

The word money has been made up from Latin word "Moneta" which means goddess Juno.The money was minted in her temple in Rome.Some people think that Latin word "Pecunia" has been derived from pecus that means Cattle.In the early stages cattle were used as medium of exchange and measure of value.The earliest know use money occurred in Mesopotamia (Iraq) around 2500 Bc.