monetary nana - Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a

monetary nana - Money is any item or verifiable record that...

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Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context, [1] [2] [3] or is easily converted to such a form. The main functions of money are distinguished as: a medium of exchange ; a unit of account ; a store of value ; and, sometimes, a standard of deferred payment . [4] [5] Any item or verifiable record that fulfills these functions can be considered money. Money can be defined as any asset that is generally accepted in the payment of goods and services and also in the settlement of debt. In essence it can be said that money is what we use as a medium of exchange for our goods and services and also for paying our debts. But for an item to function as money it has to meet several features which we shall soon discuss. Characteristics of Money Durability Money should not be perishable like tomatoes and other perishable items do. Money should be able to stand the test of time. It should be long-lasting. It should possess the quality of being stored overtime without spoilage. This buttresses the reason why gold and silver were used in the ancient periods as money or a medium of exchange. They were durable overtime. Portability Anything that functions as money should be able to be carried around easily. It should not be heavy to create inconvenience for conveyance. In this modern economy, a large amount of money can easily be carried in wallets, pockets and bags. Acceptability This is a very important feature of money. Money will be useless if it not accepted. By law anything that functions as money has to be generally accepted as a medium of exchange especially within the confines of a country. Ghana Cedis should be accepted in every corner of Ghana because it is the legal tender for Ghana. Money is generally accepted. Definition of Money According to Classical Economists: According to classical economists money is just a medium of exchange and it can not influence the income and employment of a country. In other words, the money supply which is in circulation just performs the function of exchange of goods and services. People keep money with themselves so that they could transact goods and services. Thus, according to them money is just a token and it has nothing to do with economic activity of a country. They further say that money is like a veil which wraps the goods and services in itself. Money has been accorded as a veil because it has camouflaged the operation of real economic forces. Classical economists do not rule out the act of savings or borrowing. They think the savings, borrowings and lendings take place under the shield of a veil. Again classical economists: "Accord money like an agent which expedites the chemical action of any process, but it can not change the components of chemical action".

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