This document provides information about money and its key functions through a presentation by Pratik Shukla for a macroeconomics class. It defines money and discusses its main functions as a medium of exchange, unit of account, store of value, and sometimes standard of deferred payment. Fiat money and how the money supply is comprised are also outlined. The document then contrasts money with barter systems and defines additional money functions like measuring value, acting as a medium of exchange, unit of account, standard of deferred payment, and store of value. It concludes with brief information about Sodexo as a comparison to money.

1. SCHOOL OF
COMMERCE
MACRO ECONOMICS PRESENTATION

2. MONEY
&
Its Functions
By
Pratik Shukla
B-com
2nd semester
R16BC102
Submitted to
Dr. Harini B

3. Money is any item or verifiable record that is generally accepted as payment for goods and services and
repayment of debts in a particular country or socio-economic context,[or is easily converted to such a
needed] The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of
value; and, sometimes, a standard of deferred payment. Any item or verifiable record that fulfills these functions
be considered as money.
Money is historically an emergent market phenomenon establishing a commodity money, but nearly all
contemporary money systems are based on fiat money. Fiat money, like any check or note of debt, is without use
value as a physical commodity. It derives its value by being declared by a government to be legal tender; that is,
must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private".
The money supply of a country consists of currency (banknotes and coins) and, depending on the particular
definition used, one or more types of bank money (the balances held in checking accounts, savings accounts,
other types of bank accounts). Bank money, which consists only of records (mostly computerized in modern
banking), forms by far the largest part of broad money in developed countries.[

4. Barter is a system of exchange where goods or services are directly exchanged for other goods or services without
using a medium of exchange, such as money. It is distinguishable from gift economies in many ways; one of them is
that the reciprocal exchange is immediate and not delayed in time. It is usually bilateral, but may be multilateral (i.e.,
mediated through a trade exchange) and, in most developed countries, usually only exists parallel to monetary
systems to a very limited extent. Barter, as a replacement for money as the method of exchange, is used in times of
monetary crisis, such as when the currency may be either unstable (e.g., hyperinflation or deflationary spiral) or simply
unavailable for conducting commerce.

6. Measuring Value
Medium of exchange
Standard of deferred payment
Store of value
Transfer of value

7. Fiat currencies are the generally accepted mediums of exchange. Their most important and essential function is to
provide a 'measure of value] Hifzur Rab has shown that the market measures or sets the real value of various goods
and services using the medium of exchange as unit of measure i.e., standard or the yard stick of measurement of
wealth. There is no other alternative to the mechanism used by the market to set, determine, or measure the value of
various goods and services. Determination of price is an essential condition for justice in exchange, efficient allocation
of resources, economic growth, welfare and justice. The most important and essential function of a medium of
exchange is to be widely acceptable and have relatively stable purchasing power
Medium of
Exchange
When money is used to intermediate the exchange of goods and services, it is performing a function as a medium
of exchange. It thereby avoids the inefficiencies of a barter system, such as the "coincidence of wants" problem.
Money's most important usage is as a method for comparing the values of dissimilar objects

8. A unit of account (in economics is a standard numerical monetary unit of measurement of the market value of
goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred
payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve
debt.
Money acts as a standard measure and common denomination of trade. It is thus a basis for quoting and
bargaining of prices. It is necessary for developing efficient accounting systems
It should possess the following characteristics:
1.Value common assets
2.Common and accessible
3.Constant utility
4.Low cost of preservation
5.Transportability
6.Divisibility
7.High market value in relation to volume and weight
8.Recognisability
9.Resistance to counterfeiting

9. While standard of deferred payment is distinguished by some texts, particularly
older ones, other texts subsume this under other functions.[A "standard of
deferred payment" is an accepted way to settle a debt – a unit in which debts are
denominated, and the status of money as legal tender, in those jurisdictions which
have this concept, states that it may function for the discharge of debts. When
debts are denominated in money, the real value of debts may change due to
inflation and deflation, and for sovereign and international debts via debasement
and devaluation.
Standard of
deferred
payment

10. Store of value
To act as a store of value, a money must be able to be
reliably saved, stored, and retrieved – and be predictably
usable as a medium of exchange when it is retrieved. The
value of the money must also remain stable over time.
Some have argued that inflation, by reducing the value of
money, diminishes the ability of the money to function as
a store of value.

11. To act as a store of value, a money must be able to be
reliably saved, stored, and retrieved – and be predictably
usable as a medium of exchange when it is retrieved. The
value of the money must also remain stable over time.
Some have argued that inflation, by reducing the value of
money, diminishes the ability of the money to function as
a store of value.
Transfer of value

12. Money vs Sodexo

13. Sodexo (formerly Sodexho Alliance) is a French food services and facilities
management company headquartered in the Paris suburb of Issy-les-Moulineaux.
Sodexo is one of the world's largest multinational corporations, with 420,000 employees
that represent 130 nationalities and are present on 34,000 sites in 80 countries.
For fiscal year 2010 (ending August 2009) revenues reached 15.3 billion euros, with a
market capitalization of 6.5 billion euros. Revenues by region represent 38% in North
America, 37% in Continental Europe, 8% in the UK and Ireland, and 17% elsewhere.
Sodexo serves many sectors, including private corporations, government agencies,
schools from elementary through university, hospitals and clinics, assisted-living
facilities, military bases, and correctional facilities. As of 2016 subsidiary Sodexo Justice
Services operated 122 prison in eight countries, including 42 in the Netherlands, 34 in
France, and others in Belgium, Italy, Spain, and Chile
Sodexo