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WHAT IS MONEY ITS FUNCTIONS AND FUNCTIONS
Ne'matova Durdona
Fergana District maintenance and Service Technical School,
Special science teacher at the Department of socio-economic,
humanitarian and Natural Sciences
Annotation:
this article briefly talks about the implementation of the economic needs of
mankind, money and its origin, history and stages of development, as well as its importance.
Keywords:
Money, Coin pil, paper money, commodity, subtraction, payment, economy.
Money has occupied a very important place in the history of mankind and is the basis of
economic relations. At first, people directly exchanged goods and services, but due to the
inconvenience of this process, the origin of money became a necessity. As a result of the
development of the monetary system, the economy of society began to become more orderly
and productive. Money has gained great importance not only as a means of exchange of goods
and services, but also as a means of saving and maintaining value. Currently, money is an
integral part of the economy and one of the main factors for the development of society. Money
is such a special commodity that it acts as a general equivalent for all other goods. Money
performs an important function in the exchange of common goods. Money is an economic
category and is a commodity that acts as a universally equivalent for all goods. Money is a
payment instrument that is established by the government, which is necessary only in the
process of exchange. A number of scholars have also cited their own definitions of money. For
Example, A.Smith raised money to the level of an economic category, describing money as
“money is the Great Wheel of circulation”, “ the lofty weapon of trade”. In the economic
literature on the issue of money, credit and banks, it is argued that when revealing the essence
of money, it is necessary to focus on three aspects:
1. In the IS'temol value of money, the value of other goods is reflected.
2. The basis of concrete Labor, which is expressed in money, is abstract labor.
3. .Private labor, expressed in money, manifests itself as social Labor.
There is still no single approach in the economic literature about the emergence of money.
Nevertheless, there are hypotheses that in the formation of money it was formed mainly as a
result of the sharing of things or excesses with others, which in ancient times were at the
disposal of people, which could not be saved for a long time, but also as a result of exchange
for another good. As human consciousness developed, the value of exchanged goods began to
equal. In ancient times, the function of money was performed by a variety of goods, such as
livestock, cattle skins, axes, grain products, etc. Later, the monetary function was filled by
precious metals, the reason being that they did not easily lose their quality and were able to
replace the money. Money is considered an integral part of the 3rd millennium of human
history. Before its invention, however, humans used reciprocal exchange relations, in which
goods were exchanged for goods or services. However, there have been many cases of certain
difficulties and time loss in this. For example, if someone asks a hunter to shoot a mammoth in
exchange for an ax made of one stone, it is time to find out if the Hunter is really worth serving
for one ax or not.
Despite the fact that the first coins were introduced into circulation in China, the first coins
began to be minted in historical Lydia ( now western Turkey). The first coins were found in
areas not far from historical Lydia. Around 600 BC, the Lydian king Alyattes minted the first
official coin. The coins were made of a mixture of gold and silver and appeared to have a stamp
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printed. The first gold coins were minted in the 7th century before our era by Order of the
Lydian king Giges. The first to paint his image on gold was Alexander Macedonski, who
painted his reflection. astlabki paper money was issued in China in the late 10th century to the
early 11th century. An important reason for this was the castings of paper and the creation of
printing presses in China. The paper money initially issued was referred to as” free coins“, and
later as” precious paper coins", which were not supplied with gold or goods despite being free
circulating means of payment in the country. Money has been cited as essentially performing 5
functions:
1. Value measure;
2. Handling tool;
3. Payment instrument;
4. Foundation tool;
5. World money.
1. Value measure-this is manifested mainly by reflecting the value of a commodity in the form
of an assessment.
2. The means of circulation is manifested by the receipt and sale of goods between market
participants and the provision of services.
3. Payment tool is a tool that manifests itself in all cases when goods are sold and services are
provided, the payment for which is made late.
4.Savings tool-this is when money does not fulfill its functions of circulation and means of
payment The origin and development of money is one of the most important phenomena in the
history of mankind, and it was able to make a huge contribution to the improvement of the
effectiveness of economic relations. From the Barter system to the modern electronic payment
system, the forms and functions of money began to change according to the needs of society.
Money has played an important role not only as a means of trade, but also in the unification and
strengthening of economic stability and global economic relations. Today, the importance of
money has increased even more, it has become an integral part of modern life. Therefore, it is
expected that the future development of money and the creation of new forms will have a huge
impact on the global economy
Sources used:
1. Omonov A.A. Karaliyev T.M. Textbook. Money and banks”.
2.
https://innovativepublication.uz/index.php/jelsi/article/view/1924/1697
3.
Sa’dullayev Asilbek. (2024). Pulning kelib chiqish tarixi, rivojlanishi va zarurligi.
SAMARALI TA’LIM VA BARQAROR INNOVATSIYALAR JURNALI
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(11), 288–294. Retrieved
from https: // innovativepublication.uz /index.php/jelsi/article/view/1924
