Presentation on Functions and Forms of money

Introduction
The term money means the currency notes and coins. Money is one of the most important macro economic variable. Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic.

Definition
The term money means currency notes and coins held as cash in hand or chequeable deposits with bank Money is any good that is widely used and accepted in transactions involving the transfer of goods and services from one person to another.

Kinds of Money
Metallic Coins: Metallic coins made of iron, copper, silver and gold and now made also of alloys and aluminium . Paper Money: The paper money consists of the currency notes printed, authenticated and issued by the government and the central bank of the country. Bank Deposits:. Current account deposits, Savings bank deposits,Time deposits.

Functions of Money
Money as a medium of exchange: Money functions as a medium of exchange between any two goods. Money as a measure of value: As a measure of value, money works as a common denominator, as a unit of account. Money as a store of values: Money function as a store of value is that it serves the purpose of storing value for future use.

Money as a standard of deferred payments: A "standard of deferred payment" is an accepted way to settle a debt.

PRIMARY FUNCTION
The medium of

SECONDARY FUNCTION

CONTINGENT FUNCTION

exchange and the measure of value.

Standard of deferred Distribution of national payments, store of value income, maximization of and transfer of value. satisfaction, basis of credit system.

Static functions of money are those which are related to the operation of economy and do not generate any momentum. Dynamic functions are those which bring about changes in the economic conditions such as price level, level of production and employment etc.

Importance of money
Money eliminates the problems of barter system. Money works as a factor of production. Money accelerates the pace of production and growth. Money is the lifeblood of a modern economy. Money contributes in many other ways.