Origin of Money

ORIGIN OF MONEY:

As the barter system was an inconvenient method of exchange, the people were compelled to select some commodities which were most commonly accepted in that area as a medium of exchange. Large varieties of Goods were used as money. Among them, the major goods were wheat, corn, tobacco, skin, beads, elephant tusks, shells, etc. Later, metallic coins started to be used as money. After the use of metallic money, the gradual development of money began. Then, the metallic coins were replaced by paper notes for convenience, portability, and economy.

Meaning and definition of Money

Money is anything that is acceptable as a means of payment in the settlement of all the transactions including debt. It is commonly used as a medium of exchange and means of transferring purchasing power of money. Money has been defined in both wide and narrow concept.

According to Walker,” Money is what money does.”

According to this definition, money includes all those things that perform the function of money.
According to Robertson,” Money is a commodity which is used to denote anything which is widely accepted in payment for goods in the discharge of other business obligation.”

This definition is narrow because it explains that only metallic money deserves to be called money.
According to Crowther,” Anything that is generally  accepted as a means of exchange and at the same time acts as measurement and the store of value is called money.”

Tagged Under:
history of money, MEANING, AND DEFINITION OF MONEY, MONEY, money history, ORIGIN 0F MONEY, Money