Dec 4, 2009, 1:02 PM
Money is anything that is generally accepted as payment for goods and services, and for repayment of debts.
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.
Money originated as commodity money, but nearly all contemporary money systems are based on fiat money.
Fiat money is without intrinsic use value as a physical commodity, and derives its value by being declared by a government to be legal tender; that is, it must be accepted as a medium of exchange.
There have been many historical disputes regarding the combination of money's functions, some arguing that they need more separations, and that a single unit is insufficient to deal with them all.
One of these arguments is that the role of money as a medium of exchange is in conflict with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate.
Others argue that storing of value is just a deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported, both across space and time.
The term 'financial capital' is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognised legal tender.
Bank money is intangible, and exists only in the form of various bank records.
Despite being intangible, bank money still performs the basic functions of money, being generally accepted as a form of payment.
There is no deniable fact that without money life will be difficult to live. But for others money is everything, and they would go to any extent to acquire it, on the earth or under the earth.
For those people, money means life and death, and they will dupe and rob you of your hard-earned money, even in broad daylight.
Yet, others are also of the view that without money one would not live long; that you will suffer, and then die as a result.
But the bottom-line is that people should be contented with the little money they have or, by extension, the properties they acquired.Indeed, every person should thank the good lord for giving you life, and your daily bread, since sooner rather than later we will all die, whether with or without money.