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Money and Banking, , Economic activities of primitive man were confined only to consumption and, production. With passage of time and modernization, human wants multiplied. Later,, man learnt that it was no longer possible for him to satisfy his increasing wants by, producing all the desired things himself. As a result, self dependency came to an end, and the exchange system started. Under this system, people exchanged their commodities, for other required commodities. That system was called barter system and economy, was called barter economy., , The barter system became obsolete after a long time due to its imitations such, as lack of double coincidence of wants, difficulty of storage, measurement and deferred, payment. Thus this system was replaced and money as a medium of exchange., , Meaning of Money, , Money may be anything chosen by common consent as a medium of exchange., , According to Walker, money is what money does, which means that anything that, performs the function of money is money. Money ‘ncludes all medium of exchange, — gold, silver, copper, paper, cheques, commercial bills of exchange, eto,, , According to Kent, money 1s “anything which is commonly used and generally, accepted as a medium of exchange or as 4 standard of value.