In the Traditional Economy Money defined msg each facility that could replace received with a general way. Facility to replace it in the form of any object that is able to be received by each person in the community in the process of exchange of goods and services.
According D.H. Robertson in his book
Money, stated that money is something that could be received in payment For grabbed some items.
According R.G. Thomas in his book Our Modis Banking explained that money is something available and the general way in the media received as payment for the purchase of some goods and services is also worth another ketajiran also make debt payments.
According A.C. Pigou in his book The Veil of Money, money is a medium that was meant to replace.
According to the function defined Money: Money is also a unit of value and that the payment standard that stuck - no help make sure "objects" which includes also the offer of money and which one is not as well, because these objects in the form of abstraction that could be linked together not a few other things that differ. "(Stephen Lester V. Chandler Meter.Golgfeld & 11)
Definition of money according to the law mentions that the money is not satisfactory for the needs of economic analysis. Among other reasons, that people might refuse to accept things the legal way which is defined as money and might even refuse
For the sale of goods and services to those who provide valid payment facility which in payment. (Stephen Lester V. Chandler Meter.Golgfeld & 11)
According to George Simmel, money has the ability to transform or change the social world into the world of arithmetic, money was the "purest reification means: because the power kalkulatifnya.
According to Emile Durkheim, money is able to be understood also as a social fact that its presence in the population is free from personal motives, objective and even coercive to individuals.
According Talcote Parsons, money that is not only economic instrument but also a symbolic language that is divided, this is not a commodity but a marker.
According Zelizer, money showed the plan "monies special. Sebahagian big discussion regarding money that made by anthropologists should only deal with forms of primitive money.
Money function
Main functions of money:
Money has a fundamental sense in the economic system, are:
• Facilitate the exchange of goods and services.
• Shorten the time and run business that functioned for trade.
Original functions of money:
• Money, a unit value
Money function germinal go by a variety of names, one of which the most common is the unit value (unit of value), a standard value (standard of value), arithmetic unit (unit of account), measuring the value of general (common measure of value) and the value of the common denomination (common denominator of value)
Altogether these terms represent the idea that common: monetary unit also serves as the unit in which the value of goods and services measured and expressed.
• Money which is an edit facility
Money that is able to be used also as a means for supporting the exchange. Let the money would be better used to work together with their belief. Residents should be prepared and willing to accept it.
Various terms have been given for the function of money that this 2nd: replace media (medium of exchange), an intermediary payment (medium of payment), the means of circulation (sirculating medium), and payment facilities (means of payment).
The only condition which is used for objects that will be required as well as the money is that the average person is willing to accept in exchange for goods and services.
• Money which is a storehouse of value (store of value)
3rd function of money, which the great sebahagian derived from function means change, namely that the money that serves as the warehouse value. Which is along this function to it essentially is that money serves also as an editing facility, either all at a time when, or at any time.
• Money is also a hoarder facilities ketajiran
After the money is used as the unit value and accepted by the public as a means of payment facilities, straight off the money was used as a broad manner ketajiran hoarders facilities.
Altogether preusan business people and optionally in the form of what, they will hoard their ketajiran, which will determine how much they hold in the form of money in a wide variety of non-monetary form and change of time when to dikala to achieve his
the proportion who think they are the most profitable based on wages, safety and liquidity.
• Money is also a unit of calculation
For ensuring the price of similar goods arithmetic unit functioned, also shared their arithmetic units, we will conduct a price comparison of the goods with other goods. Although money is almost always serves also as a unit of calculation, but there are examples of events in which it is not running. In hyper - inflation (inflation that is very grand). For example, if prices are rising almost every hour, traders hold bookkeeping with using the term foreign currency, together with the value of which is
stable than the value of the money in the country even though the eyes of money in the country consistently outstanding. By this argument many scholars and economists prefer to think about the same as the calculation unit which is expected, but not necessarily is the nature and belonging (property) money. But for all intents that practical, money that serves also as a unit of calculation.
Derivative function, is:
• Set as unauthorized payment media reply
Not all the people will make money, especially money in circulation, because the only money issued by certain agencies, in Indonesia issued by Bank Indonesia as the Central Bank.
• ketajiran storage and transfer facilities ketajiran.
Together with money, ketajiran such as land, buildings, capable taken ownership with utilizing money.
• Means driving economic activity.
If the value of money stable, people like utilize this money in the economic movement, after which if the increased economic activity, money in circulation must be coupled with fitting purposes.
• Standard pencicilan debt.
Money can also function as a standard HRI For future payment run, long-term payments or debt pencicilan.
Types of Money
Money circulating in the population or by Agencies effuse able to distinguish the two (2) types, is:
• Money currency
Money in circulation is that legitimate media and mandatory payments required by citizens in the run transactions daily.
• Money demand deposits
Money demand deposit is money that belongs to the citizens in the form of deposits (deposits) that can be pulled right purposes. For attract money, people utilize thoroughly. Thorough-made A / n statu RECs. namely deposits at banks For orders paid to the person who appointed the owner Rek ..
Money is money that legitimate demand deposits in an economic way, but with no legal way, meaning that only applies to certain circles, the people who reject the joint payment of money demand deposits such meticulous unable prosecuted. For bringing money demand deposits or deposits will be enabled carefully.
a) Research is a single command on the bank for paying the amount of funds, where there are three kinds of rigorous known:
1. Thorough bearer
2. Research on behalf of
3. Thorough cross.
b) the Giro Giro warrant for bank customers to move money from his account number to the RECs. the other customers who appointed. Being unable Giro slip joint redeemable cash money in the bank recipients.
Types of money according to the material of manufacture differentiated so:
• Money metal
Money metals are generally made of gold or silver because gold and silver meets the requirements of that money efficiently. Because the price of gold and silver which skew high and stable, gold and silver are easily recognizable and accepted people. In aside, gold and silver is not easily Musan. Gold and silver as well as lightly divided so units
which is even smaller. In the present era, money was assessed from heavy metals gold, but of their nominal value. The nominal value of the opinion that with a certain weight of gold as contained therein.
Money metal has three kinds of value, are:
1. Intrinsic value is the value of materials to recreate the eyes of money, for example, how the value of gold and silver which functioned For the eyes of money.
2. The nominal value is the value that is listed to the eyes of money or price cap which are listed to the eyes of money. For example one hundred Rupiah (Rupiah.100,00, -), or five hundred rupiahs (IDR. 500.00, -).
3. Change the value, edit the value of money is the capability to be exchanged with statu For goods (purchasing power of money). Examples money amount. 500.00, - can only be exchanged with a candy, while the rupiah. 1000.00, - able to be exchanged along with a bowl
meatballs.
• Paper Money
Paper money is money which is made of paper along with a picture and a certain cachet and payment facilities which are legitimate. According to the Law 23 th 1999 related to Bank Indonesia, which is along the paper money is money in the form of sheets
which is made of paper or other materials (which resembles paper).
Types of money according to the differentiated value so:
• Money (Full bodied Money)
The value of money is said that a full money if the value of which are listed on the money of equal value with the materials in use. Ie the nominal value = intrinsic value. If money was made of gold, so that the value of money is the same with the value of the gold that it contains.
Samples: money gold and silver money.
• Money sign (Token Money)
The value of money is said that a sign of money if the value of which are listed on money higher than the value of materials which are used to recreate the money or with other words, the nominal value is greater than the intrinsic value of the money. For example, for creating money amount. 1000.00, - the government passed a budget amount. 750.00, -.
sample: paper money
According J.Meter. Keynes there are three (3) the arguments of holding
money, is:
• Motif transaction (Transaction Motive)
Demand money to transact refers to the use of money For everyday transactions in fulfillment of interest such as the purchase of raw materials, payment of income and payment of electricity.
• Motif Speculation
Demand for money is intended to benefit a direct way, because knowing lucrative economic opportunities.
• Motif precaution (Precantionary Motive)
Demand for money is aimed at fulfilling the interests of emergency that can not be taken into account at the beginning of the beginning, the extra money to pay that price increases suddenly.
