Money
– its functions (activity or work)
There is lots of activity which is
performed by the money. There is a time when we exchange the commodities with
each other but know in current time frame, money become a essential or
important thing in our life and we are unable to do a single thing without it.
Ever where we see a trade and no trade will be complete without the money
payment or other settlement. Domestic trade or international trades both
become easy with the help of money.
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| Money functions |
Different types of activity
performed by the money –
ü Medium
of Exchange – money
become a main medium of exchange. It’s become very easy for every-one to make
any payment and also it is better than a commodities exchange. It’s made easy
our settlement and also makes difference in multiple exchanges. It’s save our
time and valuable relationship.
ü Standard
of transfer or payment
– money make a standard for transfer of such value or also make easy for loan
system. In previous time frame, we have a loan against the commodities or our
animals. So money make easy to take a loan & easy to pay any deferred
payments.
ü Accumulation
of value – money
has a value & if we accumulate it for future, it’s not decrease its value
or none of other destroy its value. Money has a unit and we measure different
rate and value in it similar like meters or dozens or kilograms.
ü Money
is the most liquid form among all the liquidities. It is accepted by
every-one so any one make a settlement with it like – bond or shares or
government securities or DD or other thing which is easy to convert into money.
ü Money also develops a credit system of any
country. All the bank credibility to finance all its related payment like
loan or DD or bill payments.
ü
It’s
also helping us to calculate the National income. In previous time when
there is a commodities exchange, we are unable to calculate our national income
but with the money we are able to measure our NI and different sector output.
