Generally, individuals hold cash for bridging the gap between the receipt of income and its expenditure. This approach was given by Milton Friedman and his associates in Chicago University. Some of the popular definitions of money are as follows: Robertson has defined money as “Anything which is widely accepted in payment for goods, or in discharge of other kinds of obligations.”, According to Hawtrey, “Money is one of those concepts which like a teaspoon or an umbrella, but unlike an earthquake or buttercup are definable primarily by the use or purpose which they serve.”. That is the face value of the money will equal to the metallic value contained in the money. ♥♥♥ https://tinyurl.com/vvgf8vz, Unlock Her Legs - How to Turn a Girl On In 10 Minutes or Less... ▲▲▲ http://t.cn/AiurDrZp, My special guest's 3-Step "No Product Funnel" can be duplicated to start earning a significant income online. Refers to the motive of individuals for holding cash to make out benefit from the movements of market regarding the change in interest rate in future. The money supply is categorized as M1, M2, M3 and M4. Secondary functions of money include two functions like money as a store of value and as a standard of differed payments. ♣♣♣ http://t.cn/AieXAuZz, Earn Up To $316/day! These deposits can only be transferred through checks. The holding amount depends on the amount of an individual’s income and interval of receiving income.

Provides more meaningful accounting systems, 3. For this purpose, it needs to determine all the sources and modes of payment and flow of credit in the economy, which are treated as money. In simple words, money can be defined as a medium for transaction of goods and services. Money needs to be held by individuals, else it does not exist. Today almost all the money is coming under this form. Looks like you’ve clipped this slide to already. In short, fiat money is the existing type of money in the world. Now customize the name of a clipboard to store your clips.

These functions are broadly grouped into two categories, which are shown in Figure-1: The different functions of money (as shown in Figure-1) are as explained as follows: Refer to the basic or original functions of money. Now customize the name of a clipboard to store your clips.

Medium of exchange. This has been such a great way for me to earn extra money. The amount of money need to be held for the precautionary motive depends on the nature of a person and his/her living conditions. Comments are not for promoting your articles or other sites. Token money is a form of money in which the face value is greater than the metallic value. Generally there are two types of money like commodity money and fiat money. Visual Style. Learn more. Demand for money refers to the amount of money to be held by individuals and businesses. Any way evolution of money is considering as one of the greatest milestones in the history of human beings. This is due to the fact that money is generally acceptable throughout an economy. Supply of money refers to the total amount of money (in any form) that is held by a community in a given period of time. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Refers to the longing of individuals to hold money for various contingencies that may take place in future. Ppt on money 1. Some of the definitions of money given by economists who support conventional approach are as follows: According to R.P. HubPages® is a registered Service Mark of HubPages, Inc. HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others. Kent, “Money is anything that is commonly used and generally accepted as a medium of exchange, or as a standard of value.”, According to Marshall, “All those things which are (at any time and place) generally accepted without doubt or special enquiry as a means of purchasing commodities and services and defraying expenses are included in the definition of money.”, According to Geoffry Crowther, “Money can be defined as anything that is generally accepted as a means of exchange and at the same time acts as a measure and as a store of value.”. Content Guidelines 2. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. Today, money is an important matter for all things because money performs various and unavoidable functions. Preview and details Files included (1) pptx, 1 MB. We have discussed above the types of commodities that are considered as money. For example, on every currency note, it is written, “I promise to pay the bearer a sum of…. Money Its Uses and Characteristics ... Ppt on animals and plants Aishath Afza. Gurley and Shaw, while explaining the concept of money, highlighted the substitution relationship among various factors, such as currency, demand deposits, time deposits, and saving bank deposits. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Money is a mechanism that facilitates this process.. Money may take a physical form as in coins and notes, or may exist as a written or electronic account. Tin Money Savings Piggy Bank With Ben Franklin $100 Bill Money Coin Saver 8 x 6" - 1 Tin Money Savings Piggy Bank with Ben Franklin $100 Bill Money Coin Saver 6" Exact measurements: 5.3"Dia X 5.8"H Tin money bank, approx. Commodity money relies on intrinsically valuable commodities that act as a medium of exchange. Generally there are two types of deposits like time deposits and demand deposits. So guys don’t hesitate to use it. See our User Agreement and Privacy Policy.

Paper money is regarded as the most common form of money and constitutes a large part in the money supply of a country. Looks like you’ve clipped this slide to already. Deferred payments refer to payments made on loans, salaries, pensions, insurance premium, interests, and rents. Disclaimer Copyright, Share Your Knowledge Actually this form of money was widely used in olden times. Javascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. This is used to provide traffic data and reports to the authors of articles on the HubPages Service. According to this approach, commodities that serve the purpose of money are cattle (cow, sheep, horse, and bull), grains (wheat, jowar, and rice), stones and metals (copper, brass, silver, and gold). For example, salary drawn by an individual is not spent simultaneously rather it is consumed gradually for purchasing different goods and services. As of this date, Scribd will manage your SlideShare account and any content you may have on SlideShare, and Scribd's General Terms of Use and Privacy Policy will apply. The value of all goods and services are expressed in terms of money.

Measure of value: Money use as a tool to measure the value of goods and services. Various economists and monetary experts defined money from different angles. Methods of exchanging goods and services in the economy 2. Methods of exchanging

Helps in comparing the cost incurred on production and distribution and the revenue generated from the consumption of goods and services. This is the advanced form of full bodied money. Similarly, supply of money refers to the supply of money to hold. Types Of Money Christian Machamer. This is used to provide data on traffic to our website, all personally identifyable data is anonymized. Writing a good research paper isn't easy and it's the fruit of hard work. End of Chapter * * Title: Forms of Business Organization Author: Ustaz Niazi – A free PowerPoint PPT presentation (displayed as a Flash slide show) on PowerShow.com - id: 44866b-NDM5N Money Its Uses and Characteristics. If you wish to opt out, please close your SlideShare account.

The need for metallic money was realized due to the limitations of commodity money. Money that's in the form of a commodity with intrinsic value is considered commodity money. Powerpoint that shows real life money ... then test pupils on what they have learnt. Commodity money refers to a particular type of commodity which is widely acceptable for making transactions. They treated money as a concept rather than a commodity. See our Privacy Policy and User Agreement for details. Primary functions consist of two main functions like money as a measure of value and as a medium of exchange. Propounded that definition of money should include the close substitutes of money and time deposit is one of those substitutes. Thanks for the information. If you continue browsing the site, you agree to the use of cookies on this website. In modern times, metallic money has been replaced by currency notes and checkable bank deposits. It takes into consideration only two functions of money, namely, medium of exchange and measure of value. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.

If you are looking for trusted essay writing service I highly recommend ⇒⇒⇒WRITE-MY-PAPER.net ⇐⇐⇐ The service I received was great. M3 refers to the money stock includes coins, currency notes, demand deposits, time deposits, and post office deposits. e) Token Money.

See our Privacy Policy and User Agreement for details. On the other hand, businesses need money for carrying out their business activities, which is known as business motive. This is necessary to sign in to the HubPages Service. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. In such a case, it is essential that both the parties require goods that they are receiving from each other. The term money refers to an object that is accepted as a mode for the transaction of goods and services in general and repayment of debts in a particular country or socio-economic framework. Radcliffe Committee of United States endorsed the central bank approach.

The medium of exchange function is considered as the main and unique function of money as it has solved the main problem of barter system of double coincidence of wants. Traditionally, economists considered four main functions of money, which are a medium of exchange, a measure of value, a standard of deferred payment, and a store of value. Refer to important functions of money that are obtained from primary functions. IRSHAD CV has been a student in Economics.

TOS4. For example gold was commodity money which used not only for making transactions but also for other purpose like store of wealth, security etc.

For simplicity the entire functions can be classified under three heads like primary functions, secondary functions and contingent functions. So, it performs the quality of legal tender money. Refers to a function of money that helps in determining the value of goods and services.