define money class 10 Related: Class 10 Social Science Economics - Money and Credit?

Question

define money class 10 Related:  Class 10 Social Science Economics - Money and Credit?

Answer

Money is the thing which fulfill our requirements, nd satisfies our wants..

Answer

Money is important part of our life without money we cannot satisfied our needs.

Answer

Money

Money is a medium of exchange that is widely accepted in transactions for goods and services, as well as for the repayment of debts. It is a fundamental concept in economics and plays a crucial role in the functioning of modern economies.

Functions of Money

Money serves three main functions in an economy:

1. Medium of Exchange: Money acts as a medium of exchange, facilitating the exchange of goods and services. It eliminates the need for barter, where goods are directly exchanged for other goods, making transactions more efficient.

2. Unit of Account: Money serves as a unit of account, providing a common measure of value for goods and services. It allows for the comparison of prices and enables individuals to determine the relative worth of different goods.

3. Store of Value: Money serves as a store of value, allowing individuals to save their wealth for future use. It acts as a repository of purchasing power and can be held over time without losing its value significantly.

Characteristics of Money

To function effectively as a medium of exchange, store of value, and unit of account, money must possess certain characteristics:

1. Durability: Money should be able to withstand wear and tear, as it needs to circulate in the economy for an extended period.

2. Portability: Money should be easily portable and divisible into smaller units to facilitate transactions of varying sizes.

3. Divisibility: Money should be easily divisible into smaller denominations to accommodate different transaction sizes.

4. Uniformity: Money should be standardized and consistent in terms of its quality and appearance.

5. Acceptability: Money should be widely accepted by individuals and businesses as a means of payment.

6. Limited Supply: Money should have a limited supply to maintain its value and prevent inflationary pressures.

Forms of Money

Money can exist in various forms:

1. Commodity Money: Commodity money is a type of money that has intrinsic value, such as gold or silver. It has value beyond its use as a medium of exchange.

2. Representative Money: Representative money is backed by a commodity, usually a precious metal, and can be exchanged for that commodity. Examples include paper money backed by gold reserves.

3. Fiat Money: Fiat money is not backed by a physical commodity but is declared legal tender by the government. It derives its value from the trust and confidence of the people.

Conclusion

Money is an essential component of modern economies, facilitating transactions, providing a measure of value, and serving as a store of wealth. Understanding the functions and characteristics of money is crucial for comprehending the broader concepts of economics and finance.

Answer

Money is the thing which requirement never ends

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