Money is defined as anything that is generally accepted in payment for goods or services or in the repayment of debts. Take note that there is no single definition of money, and thus economists suggest that there is a narrow and broader definition of money. The narrow definition suggests that money is anything that can be used as a medium of exchange. However, bank deposits that can easily be turned into acceptance of payment on purchases can also be included in the definition of money. As a result, money includes both notes and coins, and bank deposits.
Here money is defined as an asset variable and all assets are stock variables, that is, they are measured at a point in time. That is distinguished from flow variables that are measured over a period of time. In principle, here in South Africa money is defined as currency + deposits held by domestic, private, the non-bank sector at commercial banks: M = C + D. In principle, the money held by government and foreigners at commercial banks as well as cash held by commercial banks in vaults will not be included in the definition of money. Any cash that is not available for spending by the private sector will not be included in the definition of money in principle.
