ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -Its value comes from being declared “legal tender"-an acceptable form of payment-by the government of the issuing country. In this case, we accept the value of the money because the government says it has value and other people value it enough to accept it as payment.

Detailed explanation-3: -Money is a commodity accepted by general consent as a medium of economic exchange. It is the medium in which prices and values are expressed. It circulates from person to person and country to country, facilitating trade, and it is the principal measure of wealth.

Detailed explanation-4: -A medium of exchange is something that is generally accepted as a payment for goods and services. is the accumulation of wealth by holding dollars or other assets that can be used to buy goods and services in the future. As a standard of Deferred Payment, money can facilitate exchange over time.

Detailed explanation-5: -In economics money is defined as an asset (a store of value) which functions as a generally accepted medium of exchange, i.e., it can be used directly to buy any good offered for sale in the economy.