Money: Meaning and Importance

Abstract

               Money can be anything that people (all in that time) generally accepted as a medium of exchange, measure the value of goods and services and money can also function as a "standard of deferred payment”. In the past, people exchanged goods and services for other goods and services directly, later used anything of value as a medium of exchange and developed to use metal and paper as “money” until now. In Thailand, the development of money has begun since Kingdom of Funan, Dvaravati, Lopburi, Sukhothai Ayutthaya up till Rattanakosin Kingdom. The functions of money can be classified as medium of exchange, common measure of value, storage of value and standard for deferred payments. The good Characters of money include acceptability, durability, Portability, Ease of recognition, stability in value, Uniformity in value, divisibility and scarcity. The value of money means the purchasing power which is divided into internal value and external value. The money is important in the production, exchanging, consumption and collateral to secure the exchange system. So “Money” is important for the society and the economy.