Money Definition

Published by SD Desk on

time for startup

The English word money denotes notes and coins that give a person power to acquire and avail desired goods and services. Money grants people access to goods and services of their choice. 

Money is actually a collective name of paper notes and coins. When we say we have money, we mean to say the possession of currency notes and coins. And, when we say opposite, that means we lack possession of notes and coins.

The origin of money dates back to old civilizations. When there was a shortage of paper material, people would use aluminum and steel and copper coins. Kings that time used to possess silver and gold coins to display their worth of wealth. As mankind discovered paper, notes were formed from it. It brought people at ease to carry money in their pockets.

People use money for different purposes. Some may require building home while some need it for buying cars. Money is exchanged for goods and services. The transactions take place because of money. A transaction may refer to exchange of money for something. Some people may also infuse money to start a firm and do other kinds of trade. It is possible when people have money available.

Money comes from central bank, a high authority financial institution that exercises control over the release and seize of money in an economy. In India, we have reserve bank of India called RBI. Its every policy becomes mandatory for other banks to follow. They need to obey its rules and regulations. The RBI may also lend financial support to a bank in crisis.

Similar, countries other than our nation have also a central bank responsible for controlling money in their economies. When countries fail to survive their economies, they turn to World Bank for financial support.

Money has no real owner as it passes from one person to another person. You ownership on money is limited to a time when you make a purchase. That is when your ownership on money is transferred to other person.

In conclusion, money is something you use to gain access to your desired goods and services.

SD Desk

SD Desk aims to create, guide, and motivate young, and energetic people for entrepreneurship worldwide.