MONEY

An asset accepted by general consent as a medium of exchange. It may take, for example, the form of coins or banknotes or units stored on a prepaid electronic chip-card. Short-term deposits with credit institutions also serve the purposes of money. In economic theory, money performs three different functions: (1) a unit of account; (2) a means of payment; and (3) a store of value. A central bank bears the responsibility for the optimum performance of these functions and does so by ensuring that price stability is maintained.