Money And Banking

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Barter economy is a system in which goods and services are exchanged directly for other goods and services without using money. It is called a C-C economy because C stands for commodity, so the exchan…

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Double coincidence of wants means that each trader must find someone who wants what they offer and also offers what they want in return. This is difficult to arrange, so barter exchange becomes ineffi…

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The word money derives from the Latin word Moneta, which was the surname of the Roman goddess Juno. This term became associated with coinage.

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Crowther defined money as "anything that is generally acceptable as a means of exchange and the same acts as measure and store of value." It is considered the best functional definition because it cov…

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Prof. D.H. Robertson defined money as "Anything which is widely accepted in payment for goods or in discharge of other kinds of business obligations, is called money." The key idea is general acceptab…

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Seligman defined money as "one thing that possesses general acceptability." The emphasis is on acceptance by people in exchange and payment.

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According to the legal definition, money is what the law says is money. Currency notes and coins are legal tender money because the law recognises them as a means of payment.

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Coins are limited legal tender money, so they can be accepted only up to a maximum of ₹1,000. Currency notes are unlimited legal tender money, so they can be accepted to any amount.