Use Of Animals
Initially People Started Using Animals as Standard Measurement Value Medium of Exchange and As an Easier Means of Storage in Olden Days Agricultural the Major Sector of The Economy Enhance There Was a Large Production of Crops Producer Used to Stop the Need That Produce and Sold Rest of Crops to Buy Animals in Other Words the Exchange Their Crops Against Animals the Use to Them Cell Animals When They Wanted to Buy Goods or At Times Even Other Crops
This Way Animals Like Horse Cow and Buffalo Became the Means of Exchange and Trade in India Cows Were Considered as Wealth and Were Used for Trade in This System Higher the Animals A Person Possessed More Rich and Wealthy, He Was Considered the Problem with This System Was That Animals Are Motel They Get Sick and Die Therefore It Was Not Possible to Store the Wealth in The Form of Animals.
Use Of Minerals Stones and Coins
Going To the Limitation of Animals as Standard Value People Started Using Mineral Stone Instead of Animals When the Era of Imperium Begin People Started Using Coins as Means of Trade and Exchange of Goods and Services in The Kingdom the Only Limitation Was That There Were Used in Limited Society and Regions
Use Of Money
Democracy And Industrialisation Inspired the Need for The Modern Money as A Means of Exchange Money with The Support of Central Government Become Widely Accepted as A Means of Exchange of Goods and Services Money Also Succeeded in Overcoming the Limitation of Storage of Well with The Establishment of Bank It Become Easy to Transfer and Store Money
What Is Money
According To Marshall Money Is That Medium Which Is Used as A Means of Exchange Without Any Doubt or Investigation Regardless of Time or Place Robertson Defence Money Is What Is Accepted Universally in Exchange of Goods or Services Is Money Does That Which Performs the Function of Money Is Called Money
Functions Of Money
Money As a Medium of Exchange
Most Important Function of Money Is to Act as Medium of Exchange and Trade Money Over Comes the Limitation of The Lake of Double Coincidence of Wants and Makes Exchange Easier for Example A Farmer Can Get Money in Exchange of Wheat and Then Form That Meet Money, He Can Buy Clothes Shoes Oil Extra and Individual Can Spend Money to Satisfy His Present Demands of Goods and Supplies He Can Also Save The Money to Satisfy His Future Needs for Goods and Supplies
Money As a Store of Value
Before Money Become The Medium Of Exchange It Was Difficult To Generate And Save Well For Future Seeds Of Growth And Supplies It Was Not Possible To Keep Animals As Wealth Because Animus Are Living Beings And They Grow Old And I One Day This Made Money The Most Successful Means Of Storage Of Value In Terms Of Time It Is Easy To Have Money As The Storage Of Value Moreover It Can Also Be Used To Exchange Crops Or Any Other Goods And Services Needed Presently Or Even In Future Another Advantage Of Using Money Is That It Can Be Used In Default Department The Credit System Loans Investment Rates Sales Purchase Method Extra Got Benefited Due To This Characteristics Of Money
Money Is a Measure of Value
Money Plays An Important Role As A Measure Of Value In Water Extensive Is Becomes Increasingly Difficult To Remember The Exchange Rate And Value Of Exchange Of Good Sour Services A Person Had To Always Remember How Much Goods Or Services He Will Get For 20 Kg Rice Or How Much Cloth He Will Get For 1 Kg Ghee So On The Limitation Was Overcome By Money , Makes This Problem Is Here By Allowing The Values Of Different Goods Or Services To Be Compared And Excessed Against Each Other Money Enable Is The Working Of The Price System The Price System Allows Deciding The Price Of Each Goods And Services And Also Makes It Possible To Compare The Value Of This Goods And Services With Each Other Money Also Allows Faster Decision Making And Exchanges.
| Functions Of Money |
| Money As a Medium of Exchange |
| Money As a Store of Value |
| Money Is a Measure of Value |