What is Money & its Definitions in Economics Class 12
Are you looking for the Money definition and actually what is money as per the syllabus of Economics class 12 CBSE Board.
See, Everybody knows what is money but few can define it.
What is Money in economics class 12?
In general terms, money is anything that is commonly accepted when you buy things from others. It is a legal tender by law and has to be accepted in the settlement of economic transactions.
But, what we are here today is to define the money as per the syllabus of class 12.
Read Here:- What is Supply of Money, its definition and components
What is the definition of money in Economics?
below are the definitions commonly given in different reference books.
“Anything legally acceptable in settlement of economics transactions is money”
S.K Aggarwal Book
Definition of Money on the basis of its ‘medium of exchange’ functions.
On the basis of its function ‘medium of exchange, money can be defined as
“Money is defined as anything that is generally accepted as a medium of exchange.
S.K Aggarwal Book
Read Here:- Important MCQs of Money and Banking Chapter Class 12
Points to Remember:-
‘Medium of exchange’ is the main characteristic of Money. However, Money also performs other functions such as a store of value, a unit of account, and a standard of deferred payment.
Note:- Functions of Money is not part of the syllabus. As far as you are in class 12 for the 2021-22 session. you don’t have to go through this topic.
Read Here:- What is Central Bank, its Definition and Functions
Other Definitions of Money (Class 12 Economics)
below are the definitions of money given in other reference books.
“Money is anything which is generally accepted as a medium of exchange, a measure of value, store of value and means for the standard of deferred payment.”
Sandeep Garg Book
“Money is defined as an instrument that serves as a medium of exchange, store of value, a measure of value and standard for deferred payments.”
TR Jain Book
Read Here:- How Commercial create money through credit creation
Q. What is the main characteristics of Money
Ans:- The main characteristic of Money, is the Medium of Exchange.
Important MCQs on Money and its definition class 12
Which of the following is a must for anything to be called Money?
a) Measure of deferred payment
b) Medium of exchange
c) Store of value
d) Measure of value
Ans – b)
