Concept of Money

Money is something by which we are all aware. We know it, recognise it and use widely in our everyday life. Yet most of us do not know what exactly money is and v it is defined.

Defining Money:
To define money is complicated. This is because money is not only a name of any •atenal but it also comprises certain attributes and prcviliges. There are certain attributes Dualities which make something "money". To define money we have different approaches.
General Acceptability:
This approach says that anything which is generally acceptable for payment of •pods is called money."Money is anything that is generally acceptable in payment for^ goods and in discharge of all Vin,1, of business obligations escriptive Approach:
This approach says that besides acting as a generally acceptable thing, money must have certain other qualities as given below.
crowther Says:
"Money is anything that is generally acceptable as a means of exchange and at the same time acts as a measure and stock of value."
Legal Aspect:
J.M. Keynes was the first to emphasize on the legal aspect of money.
"Money itself is that by delivery of which debt contracts and price contracts are discharged and in the shape of which general purchasing power is held."
What is said in the above three definitions can be summed up in the famous saying.
Money is a matter of functions for a medium, a measure, a standard, a store.'" In other words money' can also be defined as "Money is what money does." Alternative Approach:
An alternative approach to define money is to take account of what constitutes money or what are the components of money.
Generally there are three components of money which are explained below. Traditional View (M1)
According to Traditional view, money consists only of currency and demanddeposits. Thus Ml = C + D
C - Currency that includes notes and coins which are the debts of government D = Deposits of banks on whom cheque can be drawn. Monetarist View (M2)
It includes saving and time deposits. This means that this view takes a broader definition of money. The saving and time deposits are not perfectly liquid so they are called near money (explain in next question)
So
M2 = Ml + Savings deposits + Fixed deposits Liquidity Approach (M3)

This is even a much broader definition of money taking into account different current assets. •M3 .= Ml + M2 + Saving scheme deposits + bearer certificates.
Other Definitions:
According to N.HALM:
"The word money has been used to designate the medium of exchange as well as the standard of value."
According to R.P KENT:
"Money is anything which is commonly used and generally accepted as a medium of exchange or as a standard of value"
According to KNAP:
"Any thing which is declared as money by the government becomes money".
According to ROBERTSON:
"Money is any thing which is generally accepted in payment for goods or in discharge of other kinds of business obligations".
Conclusion:
Summing up the above definitions and views, we can say that money is any thing that can act as a medium of exchange, and as a measure , store and unit of value. In other words, it can also be said that:
0! money! You are not my god but by God you fulfil my each desire. Or you can also say "Money is Honey".