Nature of Money
There has been lot of controversy
and confusion over the meaning and nature of money Scitovsky states that “Money
is a difficult concept to define, partly because it fulfils not one but three
functions, each of them providing a criterion of moneyness those of a unit of
account, a medium of exchange, and a store of value”. Sir John Hicks, says that
“Money is defined by its functions, anything is money which is used as money,
“Money is what money does”.
These are the functional definitions
of money because they define money in terms of the functions it performs.Some
economists define money in legal terms saying that “anything which state
declares as money is money”. Such money possesses general acceptability and has
the legal power to discharge debts. But people may not accept legal money by
refusing to sell goods and services against the payments of legal tender
money.On the otherhand, they may accept some other things as money winch are
not legally defined as money in discharge of debts. This may circulate freely.
Related Topics
Privacy Policy, Terms and Conditions, DMCA Policy and Compliant
Copyright © 2018-2023 BrainKart.com; All Rights Reserved. Developed by Therithal info, Chennai.