Money Definition and Meaning


Money is a medium of exchange, usually in the form of bills and coins, that is accepted by a society for the payment of goods, services and all kinds of obligations. Its etymological origin leads us to the Latin word denarius, which was the name of the coin used by the Romans.

Money meets three basic characteristics: it is a means of exchange, which is easy to store and transport; it is an accounting unit, since it allows to measure and compare the value of products and services that are very different from each other; and it is a refuge of value, which enables savings.

Money is a medium of exchange, an accounting unit, and a store of value. According to Abbreviationfinder, M stands for Money.

Money and trade

The development of money allowed the expansion of trade on a large scale. In ancient times, bartering was the commercial system par excellence: products were exchanged with each other (apples for wheat, cows for corn, etc.), which made it difficult to determine value and transport. Instead, with money, trade was simplified.

It should be noted that the value of money is not found in the paper of the bill or the metal of the specific currency, but rather arises from the endorsement and certification of the issuing entity (such as the Central Bank). It is important to keep in mind that money works through a social pact (it is accepted by all members of society).

Currently, money can be created according to two procedures: legal money, which is that created by the Central Bank through the printing of banknotes and the minting of coins, and bank money, developed by private banks through annotations in user accounts.

Banknotes and coins constitute circulating money.

Abstract value

In our era, money has taken on an importance never before imagined; we have reached a point of absolute dependence on it, so that without it it is not possible to live in society. Unfortunately, this trend only seems to consolidate over the years and brings with it an absolute loss of moral values ​​and, above all, the sense of belonging with our peers. So much so, that we have stopped trusting in hospitality and giving it, because without money nothing can be obtained.

Many people say that money is a kind of god and they are not so wrong. The human being has learned to depend on him so much that he is even capable of putting aside his principles in order to obtain more money, he can steal, kill, abandon, etc. In addition, a system has been built in which the word necessity has been heavily manipulated and goods that are clearly not essential have entered that classification.

The danger of dependence on money

In any case, some people who are truly aware of the damage that this absolute dependence on money causes try to get out of the system, promoting community activities that can collaborate with improving the quality of life of all the inhabitants and, above all, motivate people to interact and worry about the needs of others. In addition, bartering is becoming fashionable again and allows people to exchange certain objects that they no longer need for others that they do need. In this way, there are no objects left in an attic and people can obtain what they need even if they do not have the money to buy it.

Finally, it is important to point out that dependence on money not only causes the problems already explained, but also has a greater consequence, unhappiness (which has become commonplace in our societies). People who can’t meet their salary expectations or don’t have access to the things they want feel frustrated, discouraged and sad and this makes them lose the incentive to work and live.

Money

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