Money is anything that is generally accepted as payment for goods and services and repayment of debts and that serves as a medium of exchange. A medium of exchange is anything that is widely accepted as a means of payments. In recent years, the importance of credit has increased in all the countries of the world. Credit instruments are used on an extensive scale. The use of cheques, bills of exchange, etc. has gone up. It should however, be remembered that money is the basis of credit.
Many economists developed definition for money. Among these, definitions of Walker and Crowther are given below:
“ Money is, what money does” - Walker.
“Money can be anything that is generally acceptable as a means of exchange and at the same time acts as a measure and a store of value”. –Crowther