Definitions, functions, and types of money

Meeting the needs of life before known the money was done by the exchange of desired goods with other goods, which is called barter. The main difficulty in barter is difficult to obtain items that can be exchanged with each other with the equilibrium exchange rate. To overcome these difficulties it is determined money that have fixed benchmark.
Money is anything that can be accepted by the public as a means of payment and exchange. Objects that once used as currency among other shells, knives, animal teeth, fur, iron, copper, gold, silver, and so forth.
The terms of an object that can be used as money are:
a. easy to carry and durable
b. has the value of real standards
c. can be broken down into smaller units
d. its value is stable and easily stored
Money has the original function and derivatives function. Original function of money as a medium of exchange is general and as a unit of account. The function of derivatives is as a means of payment, equipment hoarders of wealth, size of the price / meter values, and as a standard of pay in installment of debt.
Money in circulation can be divided into two kinds / types, as follows:
a. currency, which is legal tender, issued by the government and the bank circulation. Currency consists of government money (banknotes and coins) and bank notes.
b. Demand deposit, namely that there is money in bank bills, which can be taken at any time by using checks.