ABSTRACT
Money has been described in terms of its function as a medium of exchange. It has taken the form of a very wide variety of items at different times and in different places, having only one thing in common—the intangible property of common acceptability within the community concerned. Deposits at the Post Office Savings Bank could be made transferable by cheque, and these deposits would then fall into the category of money, rather than liquid assets. Money itself can be split into primary and secondary money. All economists are agreed in rejecting the crude quantity theory of money that a change in the quantity of money of x" will necessarily lead to a like change in prices of x". It is important to realize that the presence of a variety of assets with the characteristics of liquidity will affect the demand for money.
