money is that thing that 1. it has a medium of exchange. 2. it has a standard of value. 3. it has a...

MONEY Money is that thing that 1. It has a medium of exchange . 2. It has a standard of value. 3. it has a store of value. 4. A standard of deferred payments. 5. A measure of transferring value. 6. A unit of account . 7. A most liquid asset . 8. A base of credit instruments. 9. A base of Government payments. 10. A base of economic development.

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MONEY Money is that thing that

1. It has a medium of exchange .2. It has a standard of value.

3. it has a store of value.4. A standard of deferred payments.5. A measure of transferring value.

6. A unit of account .7. A most liquid asset .

8. A base of credit instruments.9. A base of Government payments.

10. A base of economic development.

Page 2: Money is that thing that 1. It has a medium of exchange. 2. It has a standard of value. 3. it has a store of value. 4. A standard of deferred payments

KINDS OF MONEY There are three kinds of money

named are,1.Mettalic money.

2.Paper money.3.Credit money.

Page 3: Money is that thing that 1. It has a medium of exchange. 2. It has a standard of value. 3. it has a store of value. 4. A standard of deferred payments

METTALIC MONEYThat money which are made from different

metals like gold, silver, nickel etc.Two types of metallic money ,

1. Standard metallic money.2. Token metallic money.

“System of metallic money”

A.(Monometallic)1.Gold currency standard

2.Gold bullion standard3.Gold exchange standard

B.(bimetallism)

Page 4: Money is that thing that 1. It has a medium of exchange. 2. It has a standard of value. 3. it has a store of value. 4. A standard of deferred payments

PAPER MONEYThe paper money means that money made with

paper . This money issued from by the government. this money issued under country

laws.There are two types of paper money.

1.Convertible paper money2.Inconvertible paper money

ADVANTAGES1.Savings of precious metals.

2.Easy to transfer.3.Easy to identification.

4.Savings of coins making.5.Availance of demanded quantity .

6. Bank ‘s advantages.7. Government advantages.

Page 5: Money is that thing that 1. It has a medium of exchange. 2. It has a standard of value. 3. it has a store of value. 4. A standard of deferred payments

DISADVANTAGES1.Problem of population explosion.

2.Lack of value.3.Unequal distribution of wealth.

4.Problem in international transaction.

Page 6: Money is that thing that 1. It has a medium of exchange. 2. It has a standard of value. 3. it has a store of value. 4. A standard of deferred payments

CREDIT MOEY The amount of money which is borrowed or loaned out

to a person is called credit money .

CREDIT INSTRMENTS:1. CHEQUE

2. BANK DRAFT 3. CREDIT CARD

4. GOVERNMENT BONDS5. BILL OF EXCHANGE .

Page 7: Money is that thing that 1. It has a medium of exchange. 2. It has a standard of value. 3. it has a store of value. 4. A standard of deferred payments

ADVANTAGES OF CREDIT MONEY.

1. Easiest safest medium of exchange 2. Easy transference of money

3. Development of trade and commerce 4. Convenience in foreign payments

5. Encouragement of young entrepreneurs6. Growth of saving and investment

7. A source of income for banks 8. A source of financing public projects

Page 8: Money is that thing that 1. It has a medium of exchange. 2. It has a standard of value. 3. it has a store of value. 4. A standard of deferred payments

DISADVANTAGES OF CREDIT MONEY

1. THE PROBLEM OF INFLATION 2. ESTABLISHMENT OF MONOPOLIES

3. ECONOMIC INSTABILITY 4. INAPPROPRIATE USE OF CAPITAL

Page 9: Money is that thing that 1. It has a medium of exchange. 2. It has a standard of value. 3. it has a store of value. 4. A standard of deferred payments

SOME OTHER KINDS OF MONEY

1. NEAR MONEY 2. LEGAL TENDOR MONEY

3. OPTIONAL MONEY 4. MONEY OF ACCOUNT.

Page 10: Money is that thing that 1. It has a medium of exchange. 2. It has a standard of value. 3. it has a store of value. 4. A standard of deferred payments

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