MONEY

MONEY!!!! Today our entire lives revolve around this term!! How to earn it? How to earn more of it? What to do with it? We do not possess enough of it to afford that. How to earn more in a short time?? Profit, business, market, buyer, seller, investing, banks, savings, assets, liabilities, exchange, expenses, revenue… The list goes on endlessly…..  We indeed live in a world wherein this term has assumed the central role.. From taking the least important decisions to the most important ones, there is always one aspect that becomes an inseparable factor affecting the decision making.

Money is what it itself does!! It is anything which is generally accepted as a means of exchange and at the same time it assumes two important roles- measure of value and store of value. Three points here-

• When goods and services are readily sold in return for money- exchange.
• When the value of any good, product or services can be measured or evaluated in common monetary terms- measure of value.
• When the value or worth of any good, product or service can be stored in monetary terms- store of value.

Apart from these functions money also performs the functions of- Transfer of value, Enables deferred payments, it gives a common standard to evaluate different aspects.

The evolution of money as a means of exchange helped in overcoming various shortcomings of the barter system of exchange- which was goods in exchange for goods. It has solved the problems of a common measure of value, double coincidences of wants, indivisibility of goods, problem of deferred payment etc. Money has evolved from commodity money to metallic money to currency money to deposit money.

Though money has unified the working of the world economy, but it is this money itself that has created the divide in the world. The divide of rich and poor, upper class and lower class, Developed country and under-developed country.

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