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What is money?
Which have the legal tender power (power to discharge debts)
Our currency is fiat money because it serves as money on the fiat (order) of the government.
All things which can perform functions that money does
Classification of money
Indian Monetary System
Demonetization of Currency in India :
Indian Devaluation of Currency:
First Devaluation: In June 1949 (by 30.5%) (Finance Minister: Dr. John Madiai).
Second Devaluation: In June 1966 (by 57%) (Finance Minister: Sachindra Chaudhry).
Third Devaluation: On July 1, 1991 (by 9%) (Finance Minister: Dr. Manmohan Singh).
Fourth Devaluation: On July 3, 1991 (by 11%) Finance Minister: Dr. Manmohan Singh).
Money Supply in India :
M1 = Money with the Public (currency notes and coins) + Demand deposits of banks (on current and saving bank accounts) + Other demand deposits with RBI.
M2 = M1 + saving bank deposits with Post-offices. M3 =M1 + Term deposits with the Bank.
M4 =M3 + All deposits of Post-offices saving organisation excluding NSCs
Cheap Money Policy and Dear Money Policy: