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Economics Form 5 Science

Chapter 2 : Money and Banking

A. MONEY

Definition of Money

 

              Money is anything which is generally accepted by people for the exchange of goods and services and for the settlement of debts in a particular society.

 

Though people like St. Paul said "the love of money is the root of all evil' it still remains a measuring rod for economic transaction in our everyday life. Without money, our modern economic life would be almost impossible for the most important feature of today's economic set-up is specialization. Having the above conception in mind, we will not hesitate to point out that the invention, of money marked one of the most important steps taken by man in his upward march towards civilization. With money, everything is possible and without money, the rewards for rendering factors of production would be impossible and it will go a long way to disturb us from satisfying our basic necessities like food, clothing and shelter.

par Claude Foumtum
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