Interview
money and banking
- Course
- Institution
- Book
it is a usfull notes type for all student of class 12 , who want to learn eeconomics,it alsao help you in commpettion exams thank you.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Ecs1601 Assignment 1 Semester 2 2023
-
ECS1601 ASSIGNMENT 2 SEMESTER 2 2023 (100%)(DUE 7 SEPTEMBER 2023)
Seller
Follow
aashish000404
Content preview
MONEY AND BANKINGUnit 2: Learning Outcomes: -
Prepared By: -
Money - meaning and supply of money -
Currency held by the public and net Mr. NIRAJ KUMAR TIWARY
demand deposits held by commercial PGT ECONOMICS
banks. Money creation by the commercial KENDRIYA VIDYALAYA SIWAN,
banking system. Central bank and its PATNA REGION
functions (example of the Reserve Bank of
India): Bank of issue, Govt. Bank, Banker's
Bank, Control of Credit through Bank
Rate, CRR, SLR, Repo Rate and Reverse
Repo Rate, Open Market Operations,
Margin requirement.
MEANING OF MONEY
Money is anything that is generally accepted as payment for goods and services and
repayment of debts and that serves as a medium of exchange.
A medium of exchange is anything that is widely accepted as a means of payments.
Definitions: - Many economists developed definition for money. Among these, definitions
of Walker and Crowther are given below:
“Money is, what money does” - Walker.
,“Money can be anything that is generally acceptable as a means of exchange
and at the same time acts as a measure and a store of value ”. –Crowther
The narrow definition of money is based on the function of money as a
medium of exchange and includes in it only currency and chequable deposits.
Those assets which are widely used as a store of value like saving and fixed
deposits at banks are called NEAR MONEY and are frequently included only in
a broader definition of money.
FUNCTIONS OF MONEY: -
Primary or Basic Functions:-
Medium of Exchange :-Money acts as a medium
of exchange of all goods and services. It has
removed the difficulty of double coincidence of
wants found under the barter system.
Measure of Value :-Money helps to measure value of
goods and services in terms of price. This function has
greatly facilitated the process of exchange of
different goods and services.
, Secondary Functions:-
Store of Value or Wealth:-Money is the most
convenient and economical means to store wealth
which does not lose its value so quickly over time.
Hence value of good is indirectly stored in money.
Standard of Deferred Payments:-Deferred
payments are those payments which are
promised to be made infuture. Money acts as a
means of deferred payments mainly because it
has general acceptability.
Transfer of Value:-This function of money is derived from the
store of value function of money.Money is used to transfer
value from one place to another or from one person to
another.
1. Medium of Exchange: Money has removed the major difficulty of the double coincidence of
wants.
2. Measure of value: Money has become measuring rod to measure the value of goods and services
and is expressed in terms of price.
3. Store of value: It is very convenient, easy and economical to store the value and has got general
acceptability which was lacking in the barter system.
4. Standard of deferred payments: Money has simplified the borrowing and lending of operations
which were difficult under barter system. It also encourages capital formation.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller aashish000404. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67163 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now