Money is in the form of a coins and banknotes. This is very useful for daily life. Watch Exchange With Money Video to learn more.
Exchange With Money
Money supply anything that is generally accepted in payment for goods or services or in the repayment of debts; a stock concept. Money supply is the total amount of money available in the economy. (stock)
Wealth—the total collection of pieces of property that serve to store value (stock)
Income—flow of earnings per unit of time (flow).
Medium of Exchange—promotes economic efficiency by minimizing the time spent in exchanging goods and services. Facilitates specialization and division of labor. A good medium of exchange must be easily standardized,must be widely accepted,must be divisible, must be easy to carry, must not deteriorate quickly.
Money versus Barter
Without money, the only way to do business is by bartering.
Money as a Medium of Exchange
Money facilitates exchange by reducing the cost of trading. Without money, we would have to barter.Money does not have to have any inherent value to function as a medium of exchange.All that is necessary is that everyone believes that other people will exchange it for their goods.Money is a common denominator in which the relative value of goods and services can be expressed. Without money, we would have to measure the value of goods and services in terms of other goods and services. Without money, we would have to measure the value of goods and services in terms of other goods and services.
Exchange With Money Video
Useful for CBSE, ICSE, NCERT & International Students
Grade : 5
Subject : Maths
Lesson : Money
Topic: Exchange With Money Video
Visit www.oztern.com to find personalized test preparation solutions for Pre Medical – AIPMT, AIIMS, JIPMER, State, Pre Engineering – IIT JEE, JEE MAIN, BITSAT, State and Foundations – Class 6 to 10.