Question

Q2. WHAT THE 3 MAIN FUNCTIONS OF MONEY? WHO ARE THE DEPOSIT TAKERS? WHAT ARE THE 4 PILLARS OF MONEY? WHAT ARE MONEY SUPPLY COMPONENTS?

Answer 1

n Sol 2 Three functions Money services. Money authorised by govt of money 1) Medium of exchange is used as a malium fome exchange a good candle general accepta- no one can deny to accept as mode of payment. There is no need for double coincidence of wants" Because of this function, trade becomes possible in front present time bility and so it as of for 2 Store value O since money and its different to can be eastly toms are mon perishable, portable and stosed several it has store years of value" function in cash form or other like gold etc. be stored and saved. Money can

money . 3) Unit of account can be measured Value of any good or service in terms of It provides a common numerical unit of measurement to goods & Serviceso. Labour speciale becomes possible because of this funch and subjects like acco also exist because of it.

Deposit takes All those financial institutions which are authorized by Central Bank to acceptes deposits like commercial banks finance house are known as licensed deposit takers / Banks. deposit takers nePlus mera

4 pleears of money! u Debt : The money taken as credit may be from bank, credit card of short term wan etc. 2) Saving That past of income which is not consumed like secure future', masage behancial for different motiver wellness etc. emergency speculative purpose 3) Budgeting It is the skill to plan and manage estimated expat and revenue One should always plan to have more receipt as compared to expdt. 4) Investment Saving money in different forms like blopesty I retireillent fund, mutual fund for increasing the form of higher of return. to wealth in rate

errency Money supply : (Ms) supply of money in an economy at a following time. It has point two comportants a) curr (C) All paper notes and coins authorized by govt known as currency b) Demand Deposits (DD) The deposity which can be withdrawl on time or term deposits (fixed deposits recumning deposits etc.) These are also known as chequable deposits or Ms = C + DD bank deposits. ePlus era