D+S

MONEY AND BANKING

 “The more you learn the more you earn”
 Money is any commodity that is generally
acceptable as a means of payment. A means
of payment is a method of settling a debt.
Money serves as;
Medium of exchange 
Unit of account : Money serves as a unit of
account , this is an agreed-upon measure for
stating the prices of goods and services Store
of value
Money serves as a store of value , which is
any commodity that can be held and
exchanged later for goods and services
 QUALITIES OF GOOD MONEY
Acceptability: The material from which
money is made should be acceptable to all
without any hesitation.
Portability: Money should be easily carried
or transferred from one place to another.
Durability: Money material must last for a
long time without losing its value.
Divisibility: Money material must be easily
sub-divided to allow for the purchase of
smaller units of the commodities.
Homogeneity: Money should be homogeneous.
Its units should be identical; they should be of
equal quality and physically indistinguishable.
Stability: The value of money should remain
stable and should not change for a long period
of time.
Scarcity; money should be limited in supply,
relative to its demand so that people work for
it.
Difficult to forge; it should be difficult to forge
or copy to maintain its value. Is should have
features which are hard to forge.
 FUNCTIONS OF MONEY
 Money serves four primary purposes. It is:

A medium of exchange: an object that is

generally accepted as a form of payment.
A unit of account: a means of keeping track
of how much something is worth.
A store of value: it can be held and
exchanged later for goods and services at an
approximate value.
A standard of deferred payments