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Classification of money

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With the development of Civilization significant changes have been noticed in the form of currencies. In the ancient times the form of currencies would not as they are today. Long long ago stone on leather made coins were used. Later made of gold silver also came into existence. Today metals and paper are being used to make currencies. Plastic currency also has came into fashion. Classification of money on the basis of nature:- This classification has been done by a classical economist J.M. Keynes . In the classification of money  he has mentioned (1) actual money (2) money of account.   (1) actual money:   The actual money refers to that money which comes in circulation through the medium of exchange. the money used for storage of purchasing capacity and also for deferred payment is called actual money itself. Rupees for India , Dollar for America, Yen for Japan, Franc for France, Dinar for Iraq, and Mark for Germany etc. Are all the actual currencies for the respective...
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function of money

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Prof. Kinley.    He has has divided the function of money into three categories where as professor Chandler has considered the main function of money to is transaction of goods and services. On the other hand there is an English poem in a vouge about the function of money , money is matter of four functions: a medium , a measurement a store a standard.  But in practice the function of money are wide ranging considering the convenience of study function of money can be classified as follows: 1) primary functions:- (a) medium of exchange (b). Measure of value 2) secondary functions:-(a). Standard of deferred payment (b). Store of value (c). Transfer of value 3) contingent functions:-(a) distribution of income (b).giving a general form to capital (C). Basis of credit. (D). Maximum satisfaction. 4) other functions:-(a). Liquidity (b) bearer of options (c). Guarantor of solvency. A.Primary function of money:- primary function of money are those functions which are ...
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Origin and Definition of Money

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  Pic credit Google. Definition of Money.    There is no evidence about the first emergence of money , particularly the time and place concerned. People had very few wants in the beginning of human civilization. There was no need of money as they consequently interpendence for goods and services increased. Hence, the barter system came into existence to fulfill the initial needs of exchange. But a number of difficulties were observed in this system by the passage of time, for instance lack of double coincidence of wants , lack of store of common measures of value , lack of divisibility of commodities, lack of store of value, difficulty in deferred payment system, lack of transfer of value etc. In a civilised society, a need was felt that there should be such a system that could save all from these difficulties. Money came into existence in these circumstances. The term money is derived from the word "Moneta" . It is said that moneta  is the other name of ...
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