it helps us to get our basic things
but remember real happiness and love cannot be exchanged by money
- -17
In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is a necessary condition, i.e. two different people who need each other’s products must be there. By serving as a medium of exchange, money removes the need for double coincidence of wants and the difficulties associated with barter system. In this way, the use of money makes it easier to exchange things.
- 31
MONEY IS AN ACCEPTED MEDIUM OF EXCHANGE AS:
IT IS INDEPENDENT OF DOUBLE COINCIDENCE OF WANTS
CAN BE PAID FOR ANY GOODS AND SERVICES
SIMULTANEOUS FULFILMENT OF MUTUAL WANTS IS THE FIRST AND FOREMOST CONDITION TO BUY AND SELL A COMMODITY.IN MONEY TRANSACTIONS ONE CAN BUY THE COMMODITY WHENEVER ONE WANTS IT
MONEY IS ISSUED AND AUTHORISED BY THE GOVERNMENT
IT IS INDEPENDENT OF DOUBLE COINCIDENCE OF WANTS
CAN BE PAID FOR ANY GOODS AND SERVICES
SIMULTANEOUS FULFILMENT OF MUTUAL WANTS IS THE FIRST AND FOREMOST CONDITION TO BUY AND SELL A COMMODITY.IN MONEY TRANSACTIONS ONE CAN BUY THE COMMODITY WHENEVER ONE WANTS IT
MONEY IS ISSUED AND AUTHORISED BY THE GOVERNMENT
- -8
Money makes it easier to exchange things as:-
- Goods are being bought and sold with the use of Money.
- In some of these transactions services are being exchanged with the use of Money.
- A person holding money can easily exchange it for any commodity or service that he or she might want. Thus, everyone prefers to receive payments in Money and then exchange the Money for the things they want.
- Money by providing crucial intermediate steps helps to eliminate the need for the double coincidence of wants.
- Money acts an intermediate in the exchange process and is called the medium of exchange.
- 24
Money is an accepted medium of exchange as:
It is independent of double coincidence of wants
It can be paid for any goods and services
simultaneous fulfilment of mutual wants is the first and foremost condition to buy and sell a commodity.in money transactions one can buy the commodity whenever one wants it
money is issued and authorised by the government
It is independent of double coincidence of wants
It can be paid for any goods and services
simultaneous fulfilment of mutual wants is the first and foremost condition to buy and sell a commodity.in money transactions one can buy the commodity whenever one wants it
money is issued and authorised by the government
- 0
1) Modern currency that is money is authorized by the government of the country.
2) The only one monopoly holder that is RBI can only issue currency note of India.
3) No individual in India can refuse the payment made in rupees.
4) Money has a fixed value.
5) Money can be provide in exchange of any service and commodities .
2) The only one monopoly holder that is RBI can only issue currency note of India.
3) No individual in India can refuse the payment made in rupees.
4) Money has a fixed value.
5) Money can be provide in exchange of any service and commodities .
- 1