functions of money pdf

̹�5b��Sh��ete��l0F��I�0`{�n��鏆��h�cW�Z��q|��n��P��Ty�P!d�%"��"��.��^$�q7T1B-��"�Ϟ;�!�x":;y��M��oh��׬��kdT��Gk~ړ�?�B�G�ڊ��#`_z ��t+l��p7$��=�j06ds�.P��G@t>��]8��[w��u��ڐ�#�2��ݛz�?��[7,��;|��0za��F��ɀ�kx�t�4Zȡ��I�R��n��pwM7�}��a:�e�Ɋ*�Q��BX��(�4��*�%��X�q�[t`��u��#5N�/ �V�� X�]z2��S�}J��Z�)/[S��覤�Z�جysC�fKE�h��e�P�e�un62�-��0�|uSz1��պ��b��ǣ �U�~��7k�L�K�1��x[�ߖ^�:�6 ��5P�SU-�$Dcj�֤m�. � endobj x�3R��2�35W(�*T0P�R0T(�Y@�� \ |�$ In a think-pair-share activity, students first work independently determining how a list of items fulfill all or some of the functions of money in the US economy. 28 0 obj stream � As stated above, money primarily functions as a medium of exchange. | ��c�� kz� 19 0 obj stream be most importantly a function of the interest rate, income, and wealth in the economy. <> stream � endobj 23 0 obj endstream stream 18 0 obj � stream �!> Producers sell their goods to the wholesalers in exchange of money. endstream Lynda McAndress 27 0 obj �z@� �0&�2�Գ��ɹ � Store of value: This function refers to the transferring of present purchasing power to coming days or months. stream stream <> Overview & Lesson Objectives Functions of Money The earliest forms of money arose spontaneously in barter economies when experienced traders identified certain commodities that were so widely desired for actual use in the society that they could reasonably count on their acceptability as payment in almost any trade. The value of all commodities and services can be expressed in monetary terms. endobj stream <> �z@� �0& � <> You see, a measuring unit like kilometer is used in measuring distance in order that we can compare the distance from one place to another. <> 7 0 obj � Money as a standard of deferred payments Money is useful in the purchasing goods on credit as it is easy to borrow-and lend 4. � 16 0 obj This means that people can buy or sell goods and services with the help of money. �!>� � .� 2019-02-21T10:28-05:00 No matter whether money is gold or paper or beads or knives, in any economy it has three functions. endobj /XObject <> goods and services are exchanged for money. �z@� �0& It shows how money facilitates transactions by comparing a money system to a barter system. endstream 1] Money â¦ Structure of Financial Markets Debt and Equity Markets Primary and Secondary Markets Exchanges and Over-the-Counter Markets Money and Capital Markets 3. �z@� �0& 8 0 obj Measure of value: it simplifies the exchange process because itâs a means of indicating how much something costs. � stream You just clipped your first slide! �\ |�# endobj Medium of Exchange The primary function of money is that it acts as a medium of exchange. >> x�3R��2�35W(�*T0P�R0T(�Y@�� Other Functions: Money also performs such functions which affect the decisions of consumers and governments. �_��YV V V V V V�t,++++++p:�� endobj Money is basically any commodity that is generally accepted in the exchange of goods and services, and when any of the above types of inflation occurs, money begins to lose some of its functions, and I shall be discussing how this happens in my following essay. However, as a system of exchange the barter system would be highly impracticable today. Medium of exchange: Money can be used for buying and selling goods and services. x�3R��2�35W(�*T0P�R0T(�Y@�� z@� �0&�2�Գ��ɹ They are given below. <> 3. � Functions of Money In this story, the dollar that Matt found was used for many things. Money is received by the seller who sells the good. endstream endstream � of money to reduce these costs. They will be <> <> At the other end of the spectrum, many central banks and governments have taken predominantly conservative stances, which accounts in part for the very limited success of recent efforts to diffuse digital money more widely. endstream �\ |�& This worksheet is good for upper-intermediate or advanced students. � 12 0 obj � Name some ways the dollar was used. That is people hold money for aiming future. � 4 0 obj Money is the commodity or fiduciary instrument (credit or paper money) that carries purchasing power between trades and over time. Wholesalers sell the same goods to the consumers in exchange of money. <> Knowing the value or price of a good, in terms of money, enables both the supplier and the purchaser of the good to make decisions about how much of the good to supply and how much of the good to purchase. Our entire economy and society depend on money to function smoothly. Functions of Money: In general terms, the main function of money in an economic system is âto facilitate the exchange of goods and services and help in carrying out trade smoothly.â Its basic characteristic is general acceptability. ��S�VXG�P��=��E stream �!>F The demand for any good or service is usually pictured in economics as a function of its price, holding income and other factors constant. endobj � /Resources 20 0 R /Filter /FlateDecode /Length 67 >> Hope you'll find it useful. <> 1. /Resources 20 0 R /Filter /FlateDecode /Length 67 >> 1 0 obj 1 0 obj <>/Metadata 336 0 R/Pages 2 0 R/StructTreeRoot 61 0 R/Type/Catalog>> endobj 336 0 obj <>stream �z@� �0&�2�Գ��ɹ � endstream However, it also has developed secondary functions that derive from its use as a â¦ /Resources 20 0 R /Filter /FlateDecode /Length 67 >> endobj They heat the cabin and cook their food with wood; a nearby stream and well furnish water. /Resources 18 0 R /Filter /FlateDecode /Length 111 >> ��^�27��%+��x�c;�>`�H�uҟ��i,�,�p��W�L�yr��v��qoу�J�_�7�|wZ��G��9{Vy�E?.� + ۚF�2L��8ȑonn�G��)=ȑ�L�mM��:ȑ��s�#ә�( �Ha"�0B�!�/k�� Money performs many functions in a modern economy. � Functions Of Money: Medium of Exchange: Goods and services can be traded with money. �z@� �0& endobj (�D�Vy�_\\|��u�ٔ�777/nP>y~~~yy��v��ޖ#\]]�"�>"l��+�|��+5��뾌Eﮫ.��>�YE�}D��g�߾}+��E?~�hpv�=��$®ʨ��.e�,��ot��4}9}3\~]>.��D�U��n_��}ؤR��q�F��"�r��g��'z��+I��߿��Y��ׯ_��ߖ;��Z/}P1vRF�2��lʨUy�2v��3�Ǉg�'�_L��7��Ϸ��*�/=�7�V�� âMoney can be defined as anything that is generally acceptable as a medium of exchange and at the â¦ B. 3. �\ |�" Right from the beginning, money has been performing an important function as medium of exchange in the society. � Rewards of factors of production in the form of wages, rent, interest and profit are determined and paid in terms of money. �0D�=Ŝ 6��v+~P\(�� -&o��1(M��V40n�.�$��k� �p9��iԨO̪��ZFn�qE� Money facilitates transactions of goods and service as a medium of exchange. <> The following are the utmost important functions of money. <> The most important functions are given in the form of a couplet quoted below. <> � � So money serves all of these functionsâ it is a medium of exchange, store of value, unit of account, and standard of deferred payment. Money serves three basic functions: Medium of exchange: because you can use it to buy the goods and services you want, everyoneâs willing to trade things for money. endstream endobj 2 0 obj <> endobj 61 0 obj <> endobj 63 0 obj <> endobj 62 0 obj <> endobj 66 0 obj [65 0 R 68 0 R 69 0 R 70 0 R 71 0 R 72 0 R 73 0 R 78 0 R 79 0 R 80 0 R 81 0 R 82 0 R 85 0 R 87 0 R 89 0 R 92 0 R 94 0 R 96 0 R 97 0 R 98 0 R 99 0 R 100 0 R 101 0 R 102 0 R 105 0 R 107 0 R 109 0 R 111 0 R 112 0 R 113 0 R] endobj 75 0 obj [292 0 R 293 0 R 294 0 R 295 0 R 296 0 R 297 0 R 298 0 R 299 0 R 300 0 R 301 0 R 74 0 R] endobj 77 0 obj [302 0 R 303 0 R 304 0 R 305 0 R 306 0 R 307 0 R 308 0 R 309 0 R 310 0 R 311 0 R 76 0 R] endobj 115 0 obj [114 0 R 116 0 R 117 0 R 118 0 R 119 0 R 120 0 R 121 0 R 122 0 R 123 0 R 124 0 R 125 0 R 126 0 R 127 0 R 130 0 R 132 0 R 134 0 R 136 0 R 138 0 R 140 0 R 141 0 R 142 0 R 143 0 R 144 0 R 145 0 R 146 0 R 147 0 R 148 0 R 149 0 R 150 0 R 151 0 R] endobj 153 0 obj [152 0 R 154 0 R 155 0 R 156 0 R 157 0 R 160 0 R 162 0 R 164 0 R 165 0 R 166 0 R 167 0 R 168 0 R 169 0 R 170 0 R 171 0 R 172 0 R 173 0 R 174 0 R 175 0 R 176 0 R 177 0 R 178 0 R 179 0 R 180 0 R 181 0 R 182 0 R 183 0 R 184 0 R 185 0 R 186 0 R 187 0 R 188 0 R 189 0 R 190 0 R 191 0 R 192 0 R 193 0 R 194 0 R 195 0 R] endobj 197 0 obj [196 0 R 198 0 R 199 0 R 200 0 R 201 0 R 202 0 R 205 0 R 207 0 R 209 0 R 211 0 R 213 0 R 215 0 R 217 0 R 218 0 R 219 0 R 220 0 R 221 0 R 222 0 R 223 0 R 224 0 R 225 0 R 228 0 R 230 0 R 232 0 R 234 0 R 236 0 R 238 0 R 239 0 R 240 0 R 241 0 R 242 0 R 243 0 R] endobj 245 0 obj [244 0 R 246 0 R 247 0 R 250 0 R 252 0 R 254 0 R 256 0 R 258 0 R 259 0 R 260 0 R 261 0 R 262 0 R 263 0 R 264 0 R 265 0 R 266 0 R 267 0 R 268 0 R 269 0 R 270 0 R 271 0 R 272 0 R 273 0 R 274 0 R 275 0 R 276 0 R 277 0 R 278 0 R 279 0 R 280 0 R 281 0 R 282 0 R 283 0 R 284 0 R 285 0 R 286 0 R 287 0 R 288 0 R 289 0 R 290 0 R 291 0 R] endobj 244 0 obj <> endobj 246 0 obj <> endobj 247 0 obj <> endobj 250 0 obj <> endobj 252 0 obj <> endobj 254 0 obj <> endobj 256 0 obj <> endobj 258 0 obj <> endobj 259 0 obj <> endobj 260 0 obj <> endobj 261 0 obj <> endobj 262 0 obj <> endobj 263 0 obj <> endobj 264 0 obj <> endobj 265 0 obj <> endobj 266 0 obj <> endobj 267 0 obj <> endobj 268 0 obj <> endobj 269 0 obj <> endobj 270 0 obj <> endobj 271 0 obj <> endobj 272 0 obj <> endobj 273 0 obj <> endobj 274 0 obj <> endobj 275 0 obj <> endobj 276 0 obj <> endobj 277 0 obj <> endobj 278 0 obj <> endobj 279 0 obj <> endobj 280 0 obj <> endobj 281 0 obj <> endobj 282 0 obj <> endobj 283 0 obj <> endobj 284 0 obj <> endobj 285 0 obj <> endobj 286 0 obj <> endobj 287 0 obj <> endobj 288 0 obj <> endobj 289 0 obj <> endobj 290 0 obj <> endobj 291 0 obj <> endobj 64 0 obj <> endobj 49 0 obj <>/MediaBox[0 0 612 792]/Parent 2 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]/XObject<>>>/StructParents 6/Tabs/S/Type/Page>> endobj 50 0 obj <>stream 3. .� ��ebbbbbN��C`Y�X�X�X�X�X��!��@�@�@�@�@�@��XV V V V V V�t,++++++p:��8� endstream Discuss todayâs economic concepts: functions of money, characteristics of money, currency, and circulation of money. Clipping is a handy way to collect important slides you want to go back to later. /Resources 30 0 R /Filter /FlateDecode /Length 2082 >> ��87�%��x 4. �z@� �0& This function of money facilitates trade and helps in conducting transactions in an economy. 4. ��c�� ks� x�3R��2�35W(�*T0P�R0T(�Y@�� (i) Helpful in making decisions: Function # 1. Find out all about the primary functions of money using this awesome quiz and worksheet. � Functions of Money. The task is to match functions with definitions. endobj x��Yێ�6}_`�A��M�� @�� E7M��S�E�z��Vj�ү�)ʢ,z�-�x%q8s8. money it issues with a functionally equivalent and much more efficient digital sys-tem. stream Commercial finance is made available to the traders through bills of â¦ � x��ڱ � A��{��4S��\��I� Secondary functions of money include two functions like money as a store of value and as a standard of differed payments. endstream Students are then paired to share and revise their answers before being randomly chosen to report their answers to the larger group. Functions of Money. � Thus, it allows people to save in order to make purchases at a later date. 3 0 obj �z@� �0&�2�Գ��ɹ <> ��c�� k�� 15 0 obj ��c�� kl� Store of Value: It can be saved. � /Resources 20 0 R /Filter /FlateDecode /Length 67 >> x�3R��2�35W(�*T0P�R0T(�Y@�� endobj � Now customize the name of a clipboard to store your clips. These functions help us transit in goods and services with ease. 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In terms of money now, suppose the family decides that the children need a new set of.! And live in a cabin they built or beads or knives, in any economy it has three functions credit. Interest rates, price levels, resources, etc week, you had to decide whether to the! This story, the dollar that Matt found was used for buying and selling goods and services exchange, primarily! Important slides you want to go back to later economic concepts: functions of money... Account and a unit of account two functions like money as a of.