MONEY AND EVOLUTION OF MONEY ANU Reo MUL ues Perea as cuca a une Sau ae) ere ROSCA Se ak a Meee heme CRN Sucre Cound Et ue ee acy proved to be inefficient and then we invented money. CEU meme Eg But it became dangerous to carry gold and silver coins. So, Pome eh ema eae Sea eeu eRe or e-money in the form of electronic transfer of money. ee _Ceremony ected Metallic Currency Seeger Se eco Ce eke ners a SNe ee ea eres Seer iece rosie Sead eS oe Ma og Se Rc) PU a See ear ees PaCS uae ues LaceEmon Mees os ue ence Se eg S See ecg ca See ee ore ears nena kocr erica) Se og ues Se ee Una + Hard to be split into smaller denominations. Poa eee ne Sets eur See ROa Rts + Acceptability requires trust of people. oy Sey Seas By Pees eesPea ener) een Creu eect Sa yeteec Ee) Meee ee tke eee Rei Renee CHue aa Dea nae cee) eens Reine oe Pere) De ete Ue Ce ees Mu ener IEC) Calc o SRC Eee na en eee eee ned Ure CORE Me TCR CeO nS are had Cece en Den MeS Cea Reo CEBARTER SYSTEM OF EXCHANGE Barter System: Barter system of exchange is'a system in which goods are exchanged for goods. fened SenNAeRer NEU COMMU Ue es Pech mu mn cau cel ay Eee ed Secure SOT EeViI- ToL eSXONM UR MmSN Uy Pe tcecnerenee ea em MC ttc BCU rpc hark uence erated Tee ent etek iM) RRO uC Om ec Cr euteg eC aCe Sr nec ee Me rem Cur hig CU earn h uae Russ ase)T-Prae KOTO MNO ROM AlN eMO Te ACE CUM A STN A ir anc ese el eee MCS* CU Pate ech ec n Cited accounting. Difficulty of Future Payments [Link] Payments: een ete MeCN seen Mn cm ncaa eM mea MISC ecko Ney Difficulty of Storage of Value and Transfer of Value: In the C-C Pen S ees Seu RC Remi Kener) toc keto) Cre tek ee OMCs met aie ce Reon eee et emt MCS Ce ences CoonFORMS OF MONEY Important forms of money are | a Bl , A facia Ulelal\Var-lae| Full bodied Money and Fiduciary Money Coola elafeffeVelCelares = are Malle Oo1E= Ta meta aon aaa OU Rue T og erm nme uaa eer ec) Tete ree i tce ur Keun artes ae Keo Ele rccont er Tustin ues Prem ocee ies ME eee Fiduciary Money: Fiduciary money is that money which is. PROCES eC conan ens a) the payer and the payee. For example, Cheques.Fan sto OVA RRS CR aUn Cus Cece Ate eR Cr ue tru] Renae eat cen eee eee Run MRS er) eran Mer ta Sara eon ae SACS Purana rege ae eas Seat nOue kem eed Pre umatae nae ooo aaaens [ain WA aturse ed a Needs erence en Cee eae ncn Cre ent ete neo kr! Beem eens hom ss SO eee auc Tecra ar es uenr tietem ace tear Teer ieee ekg i ces NeeRCIOaVe UR Menem ARM tek) enesn eee ec ae na ack CORR k Cn nee cu eee Cees beau unm Renee cries Tee centers tur unm one Rien eR ca) Pence ®Secondary or Subsidiary Functions: 4 Standard of Deferred Payments: Deferred payments refers to ieeet ae ee cna tiy ee enn tener uee eeu aces eee ota e eate tee te) esters tis BSC (Romesh UR Eee LU ice Mee eee ie aon CaN Re system because goods can be wear-out or damaged. Storing wealth helps in future investments. Ithas induced people to Transfer of Value: Money value can be conveniently Reser naka Meee het eae It has encouraged the growth of MNCs. escelee ee ak ects urs eeu ene ECs ea ios reat aay1. Static Functions: Static functions of money means ene nem CCN Reet ey PON eda none ee umn ed Pee Meer omen ce eres cian Cet Intec eats LoreneSupply of Money STR aS ce eee aC Oc ccf Ree AUC eos Koco een It does not include: Oeste ae E say ET (OMe ae Esau enemy ene UES CU RU ea cee eg Dold Coli eam ROR ea which is held by those, Prt cacnenaeieratag Ren et af craCoreen Meunier ee acinar sume De eae] sasaaneie-cneaaeamainaaaiaal Pee ee etn Pease once Cree oad ant ey ane Petceces ue re aes See em ne neta og =.€+DD +0D \C: Currency held by the general public. Peres AU et RS Pata ecss > Demand deposits of public financial institution like CASON SEO en uence) Puen el PTC ees em cu ouueeMutons Rel Pre ec eke uu ae ato with RBI and deposits of the country's banking system with RBIcomme wst aa ena ray LU Cray Rita oll Demand Deposits mead with the (eT Tall sd Perce Pr eR a agers) seca Banks and reer ean sed eee Pee Cee Cuong eraser peeDifference between Term Deposits and Demand Deposits mo ar ieee) ooo crar! fixed period of time. Perro PAu ses Reson oc Peer Koei Paar eae) De roecois Rr ee ee) Mine Peon Ar ES EIR aeuniee ce! Eat cet cee as ees ec ees Bierce es Cone Seer ‘saving account Pee Ske EsseM, Measurement Pe ese M uns cece ee ce Net I CenCat paar kere rat cui Pa em COLCUPLS CRU nel RO) or ee cen og TSR Pea ee chun nakedFSI) iseMel MOEN Suppliers of money are: eer mieten OnE e Ceres Sacre: aCe G el aaeee ae emmy Itissues all currency notes except one rupee note Etcetera ned te aan een ce nunatak Uke Tan ORO hOC iets clCRm a hscacttse ee aitCommercial banks are the second source of money supply. Commercial banks do not issue currency but they create A Amok uu kee er eee eae see sess aC Keuen che AOC aK uc Cresent esi u aon ee eee Om I UU Roc ema Ten Rag uence ease aat cnacyPao oneetea et tact with the commercial banks. These are chequeable deposits. Meee nm Sra mur ocd vault cash of commercial banks, and Ce ne naa Leer (ore ie xls lg baa |HOME WORK ee ee en eased a ee ede TN ea Q2. In India, coins are isstied by (OMS oe Cd ) (b) Reserve Ban of India O (c)-Ministry of Finance (6) (d) Ministry of Urban Development: () erm ead meet COM ae) (Oc ar) (c) Real flow Q (d) None of these’ () Ce Ce Ce es eR eee ee ee Sem CUR a eRe ae ee el Q5. What is the difference between narrow money and broad money? (a) Currency held with public (b) Deposits with post office saving bank account Ohana eee ee eee ee ®