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WHAT IS MONEY?
Anything can be termed as
money
which
has
the
characteristic
of
general
acceptability, as a medium of
exchange and measurement
of value.
Or
Anything which is commonly
accepted as a medium of
exchange, measure of value
and store of value is called
money.
FUNCTIONS OF MONEY
PRIMARY

SECONDARY

CONTINGENT
Medium of
exchange

Measurement
of value

Distribution
of National
Income

Store of
value

Transfer of
value
Standard of
deferred
payment

Guarantee of
solvency
Basis of Credit
and credit
creation

Bearer of
option
Maximization
of satisfaction
MONEY SUPPLY
The total volume of money
held by public at a particular
point of time in an economy is
called Money Supply.
COMPONENTS OF MONEY SUPPLY
There are two main components of
money supply Currency Component – It consists
of coins and currency (or paper)
notes.
 Deposit Component – It consists
of the bank deposits, against which
cheques are issued.
MEASURES OF MONEY SUPPLY
THANK YOU
A PRESENTATION BY
SANJANA KUMARI

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Money

  • 1.
  • 2. WHAT IS MONEY? Anything can be termed as money which has the characteristic of general acceptability, as a medium of exchange and measurement of value.
  • 3. Or Anything which is commonly accepted as a medium of exchange, measure of value and store of value is called money.
  • 4. FUNCTIONS OF MONEY PRIMARY SECONDARY CONTINGENT Medium of exchange Measurement of value Distribution of National Income Store of value Transfer of value Standard of deferred payment Guarantee of solvency Basis of Credit and credit creation Bearer of option Maximization of satisfaction
  • 5. MONEY SUPPLY The total volume of money held by public at a particular point of time in an economy is called Money Supply.
  • 6. COMPONENTS OF MONEY SUPPLY There are two main components of money supply Currency Component – It consists of coins and currency (or paper) notes.  Deposit Component – It consists of the bank deposits, against which cheques are issued.
  • 8. THANK YOU A PRESENTATION BY SANJANA KUMARI