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Definition of money

It is difficult to define the term ‘money’ in the precise manner. In layman’s terms, what we use to pay for things is called money.
Various economists have suggested different definitions of money.
According to Stanley Withers, “money is what money does”.
According to Milton Friedman, “money is anything that serves the function of providing a temporary abode for general purchasing power.”
Thus, money is something that is freely used and generally accepted as a medium of exchange and/or as a unit of account. The definition of money includes currency, demand deposits and other financial assets.

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