The word money was derived from the Latin word ‘Moneta’. Actually, the first mint was set up in the temple of Goddess Moneta in Rome.
The various stages of evolution of money are commodity money, metallic money, paper money, credit money and plastic money.
Before the introduction of money, there was ‘Barter System’ where goods were exchanged with the goods only. However, there were some serious drawbacks in the ‘Barter system’. To solve all these problems and to facilitate transactions, money in the form of coins, notes has been introduced. According to Walker, “Money is what money does.”
According to Crowther, “Anything that is generally accepted as a means of exchange and that at the same time acts as a measure and as a nature of value.” Thus, money is the combinations of currency notes, coins and demand deposits.
Main Functions of Money:
The following are the main functions of money:
(i) Medium of Exchange:
It is most fundamental function of money. All the economic transactions take place in terms of money. Thus, money acts as the medium of exchange and it overcomes all the problems of barter system.
(ii) Measure of Value:
It is another important primary function of money. Money helps to measure the value of all goods and services, because all the prices can be expressed in terms of money. For example, a dozen of banana is Rs. 20 or the fees of a doctor is 200 etc. are all expressed in money forms. Hence, money helps to measure the rate of exchange of different goods and services.
(iii) Store of Value:
Money acts as the store of value. In the time of ‘Barter System’, saving was an important problem. However, invention of money has solved the problem forever. Any good or commodity can easily be stored in form of money for life-long time or more.
(iv) Standard of Differed Payments:
It also acts as the standard of deferred payment. It implies that borrowing and lending operations can be done in terms of money.
Thus, we can make a rhyme on the basis of above functions:
‘Money is a matter of functions four, A medium, a measure, a standard and a store’.
True Wealth Essay examples
824 Words4 Pages
When one asks themselves "what is wealth," people immediately think of money. They think of nice cars and big houses. People think of power and the ability to have control over others. When I was in elementary school I believed this same thing. Now that I am in college my outlook on what wealth is has changed dramatically. To me wealth is contentment and knowledge. With these two things will come the greatest wealth a person can achieve. Money does not necessarily mean contentment although some people think that it does. Wealth is not having money, property, and power if these things cannot make a person truly content. These things do not necessarily bring wisdom either. When I think of wealth a quotation comes to…show more content…
Wealth is not the ability to take everything for granted. Wealth is not greed and malice towards others. People sometimes put so much stress on wealth.
What I believe is that if one should spend their life gaining wealth than what truly was the purpose of life. When one dies all the wealth will not go with them. Wealth is not the endless struggle to gain more riches than another. If one is obsessed with this idea how can one truly be wealthy. When one struggles for material items such as money there will always be an emptiness inside them.
This emptiness will never be filled no matter how much money they can attain.
Pretty soon the need for money will destroy a person. I have seen how money can corrupt individuals. Wealth is not being famous and having everyone know who you are. Others may know who you are but if you do not know who you are what is the point of all this fame. Wealth is not the ability to gloat and boast to others about your riches.
The more a person does this they will become more lonely in life. When one brags they expect others to feel bad and jealous. This person feeds of these feelings of jealousy. If people are indifferent and do not pay attention then the person will never be complete. How can someone like this truly be wealthy?
When I think of wealth another quotation comes to mind. It was said by
Titus Lucretius Carus:
"But if one should guide his life by