Professional Documents
Culture Documents
Near Money
Bill of exchange
Government Securities Saving and time
deposits
Liquid Money
These are claims to money and
readily converted into cash.
Government Deposit Certificates
Treasury Bond
Company Shares
Standard Unit
It is a standard unit of account
where all prices are standard
in money terms.
It has no power to act as a
Money.
Money & Price Mechanism
All incomes and price measured.
Economics decision of what, where and
hot to produce are implemented through
Importance in Production
Procurement of Material
Combine different factors of production
and make payment against the factors
Cost of production, lending, borrowing,
pricing, profits,
Importance in Consumption
Importance in Trade
Importance in distribution
Saving and investment
Money and Public Finance
Social Importance
Political Progress
Index of Growth
Importance
Money attract People & people do
almost anything for money.
Whereas money will do almost
anything for people.
It is money which feeds you, clothes,
shelter, amuses you, helps you in
trade and industry
Origin and Growth
Money is development of necessity.
In long process of evolution since Adam & Eve
reaching to this modern complicated system.
Money removed difficulties of direct exchange of
goods for goods and serve as a unit of account
an medium of exchange
Money early shape is cows, goats, fish, battle
axes, knives, arrows, furs, wheat these have
storage, durability, divisibility, malleability,
homogently and transportation problem
The Next Step of Development
Search to ease difficulty of first stage lead to
discovery of precocious metals gold, silver &
copper.
It had difficulties of weight measures and value.
Transportation of precious metal in shape of
money was dangerous.
No guarantees of weight
Modern Economy
6. Paper Money
7. Credit Money
Functions
Static Functions
Money is Medium of Exchange
Money represent purchase power
Accepted in exchange of goods & services
It overcome defects of barter system
Serve common measure of value.
Yardstick of value and commodities
Standard of deferred payment when
business is done on credit
Money has store value
Money serve as time transfer, place
transfer and person transfer of purchasing
power.
Money is source of prosperity and crime