Meaning and Functions of Money

Barter system is the direct exchange

Barter system is the direct exchange of goods and services for other goods and services. It is also called C-C economy, where C stands for commodity.

This means the simultaneous fulfilment

This means the simultaneous fulfilment of mutual wants by buyers and sellers. In barter, both people must want each other’s goods at the same time.

Money passed through five stages

Money passed through five stages: animal money, commodity money, metallic money, paper money, and bank money.

Money is a thing commonly accepted

Money is a thing commonly accepted as a medium of exchange. It is also a good widely used and accepted in transactions.

Money is anything that performs four

Money is anything that performs four basic functions: medium of exchange, measure of value, standard of deferred payments, and store of value.