Money is defined as a medium of exchange. Money is anything that is generally acceptable by the general public as a means of payment and settlement of debt. It is a legal tender.
It is anything that is generally accepted by the entire public for the payment for goods and services and settlement of debts around the world.
Without money today in circulation in our various economy, we cannot do any thing tangible like buying and selling of goods and services.
But with the aids of money we can do a lots of shopping and buying of goods and services across many borders and nations.
There are various forms of money among which are
1 bank money
2 bank notes
3 legal tender
4 coins, token money and standard money as well as token money
Now let us look at various qualities of money before accepting it as a good medium of exchange.
QUALITIES OF GOOD MONEY
The followings are the good qualities of money
1 ACCEPTABILITY – Money must be generally accepted by the public before it becomes legal tender and usable.
2 HOMOGENEOUS IN NATURE – Money must be homogeneous in nature. It must be of the same kind, and must be uniform.
3 -DIVISIBILITY – Money must be easily divided into various parts or unit that can be used by the public. It could be shared and divided into smaller parts
4 -PORTABILITY – Money must be very portable. This means that it can be easily carried from one place to another without much stress. It must be able to be carried or transfer from one point to the other.
5 RECOGNITION – Money must be generally recognized by the public before it is regarded as money. Both old and young and the society must recognize it before it is accepted as money.
6 STABILITY – Money must remain stable in the economy before it is regarded as money. It must maintain its stability for a very long period of time before been regarded as money.
7 SCARCITY – Money must be very scarce. It must not be easily found every where to protect the economy from dumping. It must be relatively scarce in nature.
8 SOURCES OF SUPPLY – Money must have a major sources of supply. This means that the major source of money should be from the apex bank which is called central bank that has the sole right to print and issue money out into the circulation.
Now that we have known the qualities of this money, now let us go straight to look at functions of money
FUNCTIONS OF MONEY
There are various functions performed by money among which are
1-MEDIUM OF EXCHANGE-Money serves as a good medium of exchange in our countries today. Without money no financial transaction can take place, therefore it serves a s means of exchange for buying and selling of goods and services.
2-IT SERVES AS MEASURE OF VALUE-This is used to measure the value of goods and services in comparison with amount in monetary value. It is a unit of account
3 STORE OF VALUE-Money is used to store value of wealth and asset for future use. The value of goods and services are bought with money and store for future usage. e. g gold and jewelries.
4 STANDARD FOR DIFFERED PAYMENT-Money serves a standard for defer payment. Payment that cannot be completed today can be deferred and be paid for later in the future.
5 INSTRUMENT FOR ECONOMIC GROWTH-Money serves as a yardstick and standard to measure economic growth in our nations, i.e the GDP and the stock market with the capital market all traded in money.
Above all, since money is the medium of exchange that is generally accepted by the public, it also serves as a good messenger because it goes to various places you send it to go like buying and selling, shopping online, going on vacation, business transactions, etc.
Money obeys all commands and instruction given to it to performed since it is generally accepted by the public.
Also money they said is the root of all evil. Many people today got money with crooked or illegitimate ways which is very bad. They can go to any length to make money irrespective of the consequences.
In the mean time, let us look for better ways of getting and making money rather than involving in the acts that can jeopardize our life and family.
You will get the money at the appointed time when the time comes, wait for it for it will surely come. It will not tarry.
You can get money through the following ways
i. By planning very well about how to make money through legitimate means
ii. By engaging in good business that can yield a very good turnover and profits
iii. By learning profession that is lucrative that converts to huge wealth.
iv.-By study very well and hard in your career and areas of expertise.
v. By not lazy around and be very productive.
Therefore be a good citizen and work towards achieving your financial breakthrough and you will succeed in life.
Remember the future is bright if you can look beyond your present situation. It is well.