By Soumya Sankar Modak, Class X-D , Army Public School Amritsar.

1. Money And Credits
By Soumya

2. Barter System
• It is a system in which goods and services are exchanged by goods and
services. The system is not prevalent in present times.

3. What is monitory system ?
• It is that system in which goods and services are exchanged with
money. This system is prevalent in present times.

4. Types of Money -
• Commodity Money
• Metallic Money
• Paper Money
• Bank Money
• Plastic Money

5. Commodity Money
• Many items have been used as commodity money such
as naturally scarce precious metals, conch shells, barley,
beads etc., as well as many other things that are thought
of as having value. Commodity money value comes from
the commodity out of which it is made

6. Metallic Money
• Throughout history, various metals, some of
which are considered precious today, appear to
have been used as a form of currency.
The Bretton Woods system, under which all major
currencies were theoretically exchangeable
for gold, was abolished in 1971.

7. Paper money
• A country's official, paper currency that is circulated for
transaction-related purposes. The printing of paper
money is typically regulated by a country's central bank
in order to keep the flow of money in line with monetary
policy.

8. Bank Money
• A demand deposit or bank money refers to the funds
held in demand deposit accounts in commercial banks.
These account balances are usually considered money
and form the greater part of the money supply of a
country.

9. Plastic Money
• Polymer banknotes were developed by the Reserve Bank
of Australia (RBA), Commonwealth Scientific and
Industrial Research Organization (CSIRO) and The
University of Melbourne and were first issued
as currency in Australia in 1988. These banknotes are
made from the polymer biaxially-oriented
polypropylene (BOPP) which greatly enhances durability
of the banknotes.

10. Problems of Double
Coincidence of wants
• This problem arise in barter system. It means what the seller wish to sell exactly
match with what the buyer desires to buy. But, it is difficult to find such a person
every time. Money have solve this problem.

11. How money solve this problem ?
• Use of money eliminates the need for double coincidence of wants
as people can exchange goods for money and there is no need for
both parties to agree to exchange goods

12. Issuing of currency
• Central bank of the country issue currency of the economy.
Central bank of India is RBI ( Reserve Bank of India ).

13. Demand Deposits
• Demand deposits, bank money or scriptural money are funds
held in demand deposit accounts in commercial banks. These
account balances are usually considered money and form the
greater part of the narrowly defined money supply of a country.

14. What is cheque ?
• A cheque is a document that orders a payment of money from
a bank account. The person writing the cheque, the drawer,
usually has a current account or checking account where their
money was previously deposited.

15. Working Of Bank

16. Reasons For Credit
Domestic Purposes Crop Production
( e.g. Marriage) (e.g. purchasing seeds)

17. Domestic Purposes

18. Loan For Crop Production

19. Problem Of Debt Trap

20. Meaning Of Collateral

21. Sources Of Credit
Formal Sources Of Credit Informal Sources Of Credit

22. Self Help Group Scheme

23. The end of
this
presentation
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