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What is the Meaning of: Money | Concept and Definition of: Money

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Meanings, definitions, concepts of daily use

Money is a medium of Exchange, often materialized in the form of notes and coins, which is accepted by a company to pay for goods, services, and all kinds of obligations. Therefore, a payment instrument. Its etymological origin refers to the term latin denarius, which was the name of the divided used by the Romans.
Money brings together three basic features: it's an intermediary in trade, which is easy to store and transport. It is a unit of account, insofar as it allows to measure and compare the value of products and services that are quite different from each other; and it's a store of value, which allows to make savings (savings plans, etc.).
The development of money enabled the expansion of the trade on a large scale. Barter was once the trading system by excellence: products were traded against the other (apples compared to wheat, cows against corn, etc), making it difficult to pricing and logistics (transport). On the other hand, thanks to money, trade is simplified.
It is appropriate to point out that the real value of money is not one that is on the banknote paper or metal of the currency in question, given that it is valid only after approval and certification of the investee (the Central Bank, for example). Moreover, money runs through a social compact (it is accepted by all members of society).
Nowadays, money can be creates two procedures: legal money, is one that is produced by the Central Bank through the printing of banknotes and coinage, and bank money (deposits, transfers, etc.), developed by private banks with annotations on the accounts of the customers.
Note: This translation is provided for educational purposes and may contain errors or be inaccurate.

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