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- Dictionarymoney/ˈmʌni/
noun
- 1. a current medium of exchange in the form of coins and banknotes; coins and banknotes collectively: "I counted the money before putting it in my wallet" Similar
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Static Functions of Money. These functions are: A medium of Exchange – In an exchange economy, money plays an intermediary role. It makes the exchange system smooth and convenient. A measure of Value – The value of a product or service is determined on the basis of the money needed for its possession. This helps in making the exchange a ...
Stability. Of all the qualities of good money, stability is probably the most essential one. The value of money cannot change for a long period of time and hence remain stable. If the value of money keeps changing, then it will fail to function as a measure of value and as a standard of deferred payment.
Money supply refers to the total stock of money of all types ( currency as well as demand deposits) held by the people of a country at a given point of time. Money supply is measured in several ways which includes M1, M2, M3 and M4 measurement of money supply. Every measurement has it own definition with different components varying from most ...
Q 1. Define money. Explain the contingent functions of money. View Solution. Q 2. Answer in details -. Explain primary, secondary and contingent functions of money. View Solution. Q 3.
Solution. Verified by Toppr. Money supply means the total stock of money in circulation among the people at a particular point of time in an economy. The supply of money is comprised of two components that include currency and demand deposits available with banks. Was this answer helpful?
Money has the ability to satisfy all your unlimited needs and wants. You want the cake, or the pencil, or the sneakers, or all of them. The money will give you the ability to buy it all. One can argue you can also barter for the goods. But then you would have to have some service or product that the shop owner wants.
Money is the universally accepted medium of exchange. To smoothen the process of transaction, an intermediate good is necessary which is acceptable to both parties, such a good is called money. Solve any question of Money and Credit with:-
Briefly explain the money flow and the real flow of income. Solution. Verified by Toppr. Money flow refers to the flow of money in terms of receipts and payments across different sectors of the economy. Flow of factor payments by producer sector to the household sector or flow of money from household sector to producer sector on account of the ...
None of these. ‘Money is what it does’ is defined by Prof. Walker. This means that money is a term which is defined by its functions some of which are medium of exchange, measure of value, unit of account, etc. It includes notes, coins, bank drafts, cheques, bills of exchange, etc. Was this answer helpful?
The main functions of money are:-. 1. Primary function: It is a unit of value which is a medium of exchange. 2. Secondary functions: It is used to make future payments, store of value and transfer of values. 3. Contingent Functions: It is a liquidity which distributes our national income and gives maximum satisfaction to consumers and producers.
