Money and Its Evolution: Money and Banking, Evolution of Money
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Money is anything which is accepted as a medium of exchange, measure of value, store of value and means for standard of deferred payment.
Why We Need Money?
- Barter exchange refers to exchange of goods for goods. An economy, where there is a direct barter of goods and services, is called barter economy or C-C economy.
- Barter economy has a major drawback: βLACK of double coincidence of wants, standard of deferred payment, unit of account and store of value.β
Money and Banking
Various Stages- Evolution of Money
The Functions of Money
What Serves as Money?
- Money today: Fiat money
- Decreed as money by government
- Little value as commodity
- Maintains value - medium of exchange because people have faith that the issuer will stand behind it.
β Manishika