Everyone uses money. We all want it, work for it and think about it. While the creation and growth of money seems somewhat intangible, money is the way we get the things we need and desire. The task of defining what money is, where it comes from and what it's worth belongs to those who dedicate themselves to the discipline of economics. Here we look at the multifaceted characteristics of money.
1.(Definition of money....)
Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally, a standard of deferred payment.
2.(The value of money....)
Does money obtain value because banks issue 97% of it in the form of credit? Does money obtain value because it is issued by banks as debt and must be repaid back along with interest? What gives money its value?
Money only has value because of all the citizens in the country working together in a supportive social and legal framework. Money only has value because it is accepted as a medium of exchange for the entire country, and is accepted by Government for the payment of taxes. If we can accept that this is what makes money valuable, then money should be regarded as a public resource, to be issued for the common good. If this is what makes money valuable, it should not be issued by private banks for their own benefit.
