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Question

Who said money is what money does ________.

A
Adam Smith
B
Prof. Amrit Sen
C
Dr. Man Mohan Singh
D
Prof. Walker
Solution
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Correct option is A. Prof. Walker

The core of all forms of money throughout the history of mankind is faith.
Suppose you sell a pack of cheese to somebody and they give you a hundred rupee note. Why do you accept that worthless piece of paper in exchange of the real commodity which you can actually consume. The reason is faith,
you have faith that when you take that piece of paper to somebody they will also accept it and give you something real that you want.
If you feel that nobody will accept that paper then you won't accept it either.
So what money does? It makes transactions easier. And help overcome the limitations the barter system. Anything can be used as money if everybody is willing to accept it in transaction. It should be generally acceptable to people. It could be virtually anything from a piece of plastic, stamp, buttons etc.
Given of course everybody believes in those things and has confidence in them. In past even bars of clay has been used as money in some civilizations.
So that's what money does. Anything that do this function is money. So money is what money does. Hence, correct answer is option A.

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