2. WHAT IS MONEY
Money is one of the wonderful inventions of man. Money
has defined differently by different economists.
“money is like a leg- use it or lose it”
These definitions are usually classified into three groups:
Descriptive
Legal
General Acceptability
“if your happiness depends on money, you will never be happy with yourself’
3. DIFFERENT DEFINITION
DESCRIPTIVE DEFINITION
Various type of function of money that money used for
exchanges of good or barter system.
LEGAL DEFINITION
The money or any thing which are accepted or authorized by a
Government or State Bank.
GENERAL ACCEPTABILITY DEFINITION
The money which are generally accepted in all over the country.
In the words of kents; Money is anything which is commonly
used and generally accepted or medium of exchange or as a
standard of value.
Money is anything that is regularly used in economy
transactions.
4. DIFFERENT BETWEEN MONEY, WEALTH
& INCOME
MONEY: Any thing which is generally acceptance in payment of
goods and service.
WEALTH: It includes all the resources which are owned by an
individual or firm or a nation. It include; physical goods , assets
and financial assets. Such
as; land, property, shares and so on. It is no time period.
INCOME: It is a return on wealth. Income is a flow of money
earnings per unit of time; a day, a week, month or a year. So
income has time dimension, Simply output of wealth.
NEAR MONEY: Near money can be easily converted in currency
or easily converted in cash; i.e. Gold, Silver, Machinery & so
on
5. STAGES IN DEVELOPMENT OF
MONEY
EVOLUTION OF MONEY
There was no use of money. The families were almost self
sufficient. Each family consumed all it produced. There was no
need to exchange goods and so there was no need for money.
COMMODITY MONEY
It has a value a part fro its use as a money. It denotes the Barter
System. Which through goods transactions.
METALIC/COIN MONEY
In the place of goods and service after the after the barter system
the can money or metallic money was used in first time.
Coinage; To maintain quality and quantity of metals the coin
were stamped on both sides by a competent authority called
coinage.
“money is better than poverty, if only for financial recourses .”
6. STAGES IN DEVELOPMENT OF
MONEY
PAPER MONEY:
The next development in the payment system was paper
currency. Paper currency is made of paper and function as
medium of exchange.
Fiat money; Fiat money consists of paper money it is
accepted as money because government says it is money.
CREDIT MONEY/ BANK MONEY:
Bank money is the use of cheques as a medium of exchange. The
cheques are issued by the commercial bank to the account
holders only.
“money is like a guest; it comes today, leaves tomorrow”
7. STAGES IN DEVELOPMENT OF
MONEY
ELECTRONIC BANKING STAGE:
Electronic banking is the modern system of transferring
funds using electronic communications. The payments
are now increasingly mode through magnetic strip cards.
Such as; Debit cards, Credit cards and so on.
“when your wine is finished, conversation ends; when your money has
spent, you lose your friends”
“better to lose a little money than a little friendship”
