Money

Money is historically an emergent market phenomenon establishing a commodity money, but nearly all
contemporary money systems are based on fiat money. Fiat money, like any check or note of debt, is
without intrinsic use value as a physical commodity. It derives its value by being declared by a
government to be legal tender; that is, it must be accepted as a form of payment within the boundaries
of the country, for "all debts, public and private. Such laws in practice cause fiat money to acquire the
value of any of the goods and services that it may be traded for within the nation that issues it. as a
means of reducing the need to carry heavy and cumbersome strings of metallic coins to conduct
transactions. Similar to making a deposit at a modern bank, individuals would transfer their coins to a
trustworthy party and then receive a note denoting how much money they had deposited. The note
could then be redeemed for currency at a later date.

Functions
Money is often defined in terms of the three functions or services that it provides. Money serves as
a medium of exchange, as a store of value, and as a unit of account.

There have been many historical disputes regarding the combination of money's functions, some
arguing that they need moreseparation and that a single unit is insufficient to deal with them all. One of
these arguments is that the role of money as a medium of exchange is in conflict with its role as a store
of value: its role as a store of value requires holding it without spending, whereas its role as a medium of
exchange requires it to circulate. Others argue that storing of value is just deferral of the exchange, but
does not diminish the fact that money is a medium of exchange that can be transported both across
space and time. The term "financial capital" is a more general and inclusive term for all liquid
instruments, whether or not they are a uniformly recognized tender.

1. Medium of exchange: Money can be used for buying and selling goods and services. If there were no
money, goods would have to be exchanged through the process of barter (goods would be traded for
other goods in transactions arranged on the basis of mutual need). For example: If I raise chickens and
want to buy cows, I would have to find a person who is willing to sell his cows for my chickens. Such
arrangements are often difficult. But Money eliminates the need of the double coincidence of wants.

2. Unit of account: Money is the common standard for measuring relative worth of goods and service.

3. Store of value: Money is the most liquid asset (Liquidity measures how easily assets can be spent
to buy goods and services). Money’s value can be retained over time. It is a convenient way to store
wealth.

4.Standard or deferred payment: Money is also invetiably used as the unit in terms of which all future
or deferred payments are stated. Future transcations can be carried on in terms of money. The loan,
which are taken at present, can be repaid in money in the future. The value of the future payments is
regulated by money.

5.Transfer of value: value of any asset can be transferred from one person to another or to any
institution or to any place by transferring money. The transfer of money can take place irrespective of
places,time and circimstances. Transfer of purchasing power,which is necessary in commerce and other
transcations,has become available because of money

Note on Paper Money

Paper Money (1974) is the second album by the band Montrose. It was produced by Ted
Templeman and is the band's final recording with original vocalist Sammy Hagar. It marks the arrival of
new bass player Alan Fitzgerald, replacing original bassist Bill Church.

Musical diversity is the driving force behind Paper Money, which opens with the pop-flavored and radio-
friendly Underground, an unlikely cover of a song released the previous year by eccentric Warner Bros.
labelmates Chunky, Novi and Ernie. Featuring an organ-like guitar sound created by using a leslie
speaker cabinet instead of a conventional guitar amplifier and given a major musical makeover that
obscures the song's dark, death-obsessed lyrics ("Take me now or let me die...change me into a maggot
pie"),Underground sets the tone for an album that is unpredictable at every turn and covers a broad
musical spectrum which includes an acoustic ballad cover (the piano-laced Connection by the Rolling
Stones), and an upbeat 1960s-influenced instrumental (Starliner). Ronnie Montrose heightens and
expands his own presence by contributing lead vocals on the sparse and pensive ballad We're Going
Home, which features mellotron provided by guest keyboardist Nick DeCaro who would later join
Ronnie Montrose's post-Montrose Open Fire band.

As cited in both contemporaneous and later reviews of the album, only the hard rocking energy and
sexual swagger of I Got the Fireechoes the trademark qualities that characterized the band's explosive
debut. The Dreamer, a low-tuned downtempo dirge reminiscent of Master of Reality-era Black Sabbath
also retains something of the first album's metallic essence, but with a twist: instead of the expected
guitar solo, the band drops out completely to give way to a swelling synthesizer interlude provided
by Alan Fitzgerald. After building acrimony between Ronnie Montrose and Sammy Hagar reached a peak
during the band's 1974-75 European tour to promote Paper Money, Hagar parted ways with the band in
early February 1975 and was replaced by vocalist Bob James.