MONEY - DEFINITION"In order for anything to be classed as money, it must be accepted fairly widely as an instrument of exchange." - A C Pigou.

"Money is what money does." - Walker "Money is anything that is habitually and widely used as means of payment and is generally acceptable in the settlement of debts." - G D H Cole.

"Money constitutes all those things which are at any time and place, generally current without doubt or special enquiry as a means of purchasing commodities and services and of defraying expenses." - Alfred Marshal

By money is to be understood "that by delivery of which debt contracts and price contracts are discharged, and in the shape of which a store of General Purchasing Power is held." - J M Keynes

"Money can be anything that is generally acceptable as a means of exchange and that the same time acts as a measure and a store of value." Crowther

APPROPRIATION a sum of money allocated officially for a particular use

INDEX NUMBER An index number is an economic data figure reflecting price or quantity compared with a standard or base value. The base usually equals 100 and the index number is usually expressed as 100 times the ratio to the base value.

MONETARISMThe key features ofmonetarist theoryare as follows:1. The main cause of inflation is anexcess supply of moneyin an economy leading to in the words of the late Monetarist economist Milton Friedman,too much money chasing too few goods2. Tight control of money and creditis required to maintain price stability3. Attempts by the government and the central bank to use fiscal and monetary policy to fine-tune the rate of growth ofaggregate demandare ineffective. Fiscal policy has a role to play in stabilising the economy providing that the government is successfully able to control its own borrowing4. The key is for monetary policy to becredible in the hands of an independentcentral bank so that peoplesexpectationsof inflation are controlled

DEFINITION OF BANKA bank is afinancial institutionwhose main business is to accept money on deposit from some people and to advance loans on interest to some othersProfessor Geoffrey Crowtherhas defined bank in his book"An outline of Money"in the following words, bank is a firm which collects money from those who have it spare. It lends money to those who require it.Professor Kinleyhas defined bank as "A bank is an institution which receives deposits of money and advances loans."

MONEY MULTIPLIER is the amount of money that banks generate with each dollar of reserves. The money multiplier is the ratio of deposits to reserves in the banking system.

CENTRAL BANK a national bank that provides financial and banking services for its country's government and commercial banking system, as well as implementing the government's monetary policy and issuing currency.

BANK RATE also referred to as the discount rate in American English, is the rate of interest which a central bank charges on the loans and advances to a commercial bank

PUBLIC EXPENDITUREis spending made by the government of a country on collective needs and wants such as pension, provision, infrastructure, etc

PUBLIC REVENUE Public revenue refers to the income of the government obtained through tax and nontax sources. The income of the government through all sources is called public income or public revenue.According to Dalton, however, the term Public Income has two senses wide and narrow.In its wider sense it includes all the incomes or receipts which a public authority may secure during any period of time. In its narrow sense, however, it includes only those sources of income of the public authority which are ordinarily known as revenue resources. To avoid ambiguity, thus, the former is termed public receipts and the latter public revenue.

BUDGET an estimate of income and expenditure for a set period of time.