• A medium of exchange.
• With the help of money any exchange of goods and services can take place.
• Money is said to be the most liquid asset among all the assets of a man.
• It has general acceptability as a means of payment and liquid characteristic. Keynes called this liquidity preference.
• Generally money is created by the Central Bank or the Government of a country.
• These are legal tender money as there is legal compulsion for their acceptance.
• They also called as Cash Money.
• Another considerable flow of money is Credit Money — created by the commercial banks by their loan transactions.