Money and its Functions (HINDI) скачать в хорошем качестве

Money and its Functions (HINDI)

Money is defined in terms of what it does: money is an asset that can easily be used to purchase goods and services. Currency in circulation—actual cash in the hands of the public—is considered money. So are checkable bank deposits—bank accounts on which people can write checks. Money plays three main roles in any modern economy: it is a medium of exchange, a store of value, and a unit of account. 1. Medium of Exchange Our cardiac surgeon/refrigerator example illustrates the role of money as a medium of exchange—an asset that individuals use to trade for goods and services rather than for consumption. 2. Store of Value In order to act as a medium of exchange, money must also be a store of value—a means of holding purchasing power over time. 3. Unit of Account Finally, money normally serves as the unit of account— the commonly accepted measure individuals use to set prices and make economic calculations. A unit of account is a measure used to set prices and make economic calculations. Commodity money is a good used as a medium of exchange that has intrinsic value in other uses. Commodity-backed money is a medium of exchange with no intrinsic value whose ultimate value is guaranteed by a promise that it can be converted into valuable goods. Fiat money is a medium of exchange whose value derives entirely from its official status as a means of payment. A monetary aggregate is an overall measure of the money supply. Near-moneys are financial assets that can’t be directly used as a medium of exchange but can be readily converted into cash or checkable bank deposits. M1 = coins and notes that are in circulation and other money equivalents that can be converted easily to cash. Supply of Money M2 = M1 + Savings deposits of post office savings banks M3 = M2 + Time deposits with the banking system M4 = M3 + All deposits with post office savings banks #YOUCANLEARNECONOMICS #ECONOMICS Subscribe me @    / ezclassesfaghsa   Like me on Facebook @   / faghsa   Follow me on Twitter @ https://twitter.com/?lang=en