Money has been defined from different angles by several economists. Some economists have discussed the value function or liquidating aspects of money in the definition. Others have mentioned general acceptability and include commonly used qualities of money in the definition. Some economist have stressed on the legal aspects of money in the definition of money. The different approaches towards a definition of money are grouped under the three main heads.
General acceptability:
Under this head, all the three definitions, which mention general acceptability and commonly used qualities of money, are included. For example, money is everything which is widely accepted in payment for goods or in discharge of other kinds of business obligation.
Descriptive definitions:
Money may be defined as a means of valuation and of payment, or you can say money may be defined as anything that is generally acceptable as a means of exchange and that at the same time acts as a measure and as a store of value.
Legal definitions:
Legal definitions are those which stress on the legal aspects of money. Money means that by delivery of which debts contracts and price contracts are discharged and in the shape of which a store of general power is held.
General acceptability:
Under this head, all the three definitions, which mention general acceptability and commonly used qualities of money, are included. For example, money is everything which is widely accepted in payment for goods or in discharge of other kinds of business obligation.
Descriptive definitions:
Money may be defined as a means of valuation and of payment, or you can say money may be defined as anything that is generally acceptable as a means of exchange and that at the same time acts as a measure and as a store of value.
Legal definitions:
Legal definitions are those which stress on the legal aspects of money. Money means that by delivery of which debts contracts and price contracts are discharged and in the shape of which a store of general power is held.