775 B
775 B
Money
Definition
A universally accepted medium of exchange that eliminates the limitations of barter by providing a commodity that everyone is willing to accept in trade, enabling the precise valuation and exchange of goods regardless of individual preferences.
Source Chapter
Book I, Chapter 4
Context
Smith explains how money emerges as the solution to barter's inefficiencies, describing how individuals naturally accumulate certain commodities that they believe others will accept in exchange, eventually leading to metals becoming the preferred medium due to their durability and divisibility.
Economic Domain
Exchange