Broadly speaking, money is anything that is freely accepted as payment for goods and services and repayment of debts, such as currency, drafts, checks and payment orders, travelers cheques, book entries, bills of exchange, debentures, or other financial instruments or documents.
It is typically used as an exchange medium and an accounting unit, and therefore can be called as generalized money. Thus, it includes all assets that are widely accepted as payment, such as coins, paper money, currencies, credit cards and debit cards, stored value cards, cheques, traveler’s cheques, money orders, and a variety of other authorized certificates of payment or exchange.
In addition, generalised money includes the various financial instruments used in store of value activities such as gold, silver, stocks and bonds. It also includes other investments such as real estate, artwork, collectibles, and other assets, as long as these assets are accepted in exchange for goods, services, and for paying off debts.
In the modern world, money is most commonly expressed in terms of national currencies, and these have largely been replaced by credit and debit cards, internet payment services, and other forms of electronic transfers of funds. Money is increasingly created by banks, insurance companies, mutual funds, pension funds, and other financial institutions.
It is important to note however, that different countries may view money differently, and the scope of its value may be defined differently for different countries. For example, in the United States, money is typically thought of as being a physical unit such as a dollar, but in other countries it could include other forms such as cheques and money orders.
In summary, money, in its broadest definition, encompasses all mediums of exchange, whether tangible or intangible, that are accepted as payment for goods, services, and debt repayment. It differs from country to country, and can range from currency to debt instruments and other forms of electronic transfers.
