Money is anything which is acceptable in common in exchange for goods or services

• The evaluation of money could be listed out from the time of the barter system to the present day. • Use of commodities : Stones, Shells, bones of animals, tobacco.

• Use of metal contents: Some metal contents such as gold, Sliver were circulated

• Use of metallic coins: Face value and the material value indicated on the metallic coins

• Use of notes and coins: In order to avoid problems, currency notes and coins were published by the authorized government institution.

Example:-

Sri Lanka – Rupee, Cent

United kingdom – Sterling pounds, Penny

United states of America – Dollar, Cent

Countries of the European Community – Euro, Cent
• Use of Bank money

Cheques being used through current accounts

• Uses of electronic money

There is electronic money, special cards were introduced through the development of information and digital technology.

Eg. Credit card, Debit card, Prepaid card
Characteristics of good money stated as follows

• Acceptability – People should accept commonly

• Durability – Money needs to be long – lasting

• Scarcity – The commodity used must have a stable value and be scarce in nature

• Portability – Money should be easy to handle.

• Money should be easy to recognize
• Divisibility – The money used has to be capable of being divided into units
The money used at present can be categorized as follows

• Currency – Notes and coins issued by an authorized body is called currency. This has to be accepted legally..

• Bank money:
This refers to the amount of money which represents the demand deposits or the current
account balances maintained at commercial banks. These balances at banks are being
used to issue cheques. This has less liquidity when compared to currency but high
liquidity than near money.
• Near Money :
Though these are lower in liquidity than currency, it is easily and quickly convertible
into cash
Example:
Savings and fixed deposits in commercial banks, commercial papers, treasury bills
• Electronic Money (E-Money):
A type of money being invented as a result of information technology and digital
technology which is used nationally and internationally.
Example:
• Debit Card :
A Bank account is necessary to obtain a debit card and debit card transactions are
carried out automatically through an electronic network.
• Credit card :
A Bank account is not necessary to obtain a credit card, Goods and services can be
bought up to a certain value using a credit card.
• Prepaid card :
This card could be obtained by paying money in advance.
The following are some facilities when using these cards while settling payments
• ATM – Automated Teller Machines
• EFTPOS – Electronic Funds Transfer Point of Sales
• Tele banking – Tele banking facilities
• On line banking – Internet Banking Services