Sundaram Ponnusamy (author) from TamilNadu, India on January 29, 2019: Its good but I have a question is the function same as the role, tnx 2 the site .... Found some of my assignments tho.

Every branch of knowledge has its fundamental discovery. It's a very Easy to study for student eeducational life. Explain the role of money in a modern economic system. Buying goods, paying for services, funding investments and saving for a rainy day are just a few of money's applications. Even though the country faced great depression in 1930 and subprime mortgage crisis in 2008, it was able to regain its economic stability magically. Iron, for instance, would not be satisfactory in this respect. Click one of our representatives below and we will get back to you as soon as possible. Standard of deferred payments: Money is used as a standard for future (deferred) payments. So we can measure the value of a good by the money we pay for it. Even if a material is divided into a number of pieces, they must be capable of being reunited without loss. If the world adopts one currency, the problem of currency risk will be eradicated completely. It has many difficulties. Durability: The material used as money should not deteriorate. background: transparent; A unit of account. Thus, money includes coins, currency notes, cheques, Bills of Exchange, and so on. Metals have this advantage. But money overcomes these difficulties. 10, 11): Money is a concept which we all understand but which is difficult to define in exact terms. This is great help in my social studies subject. over the world. Barter is the direct exchange of goods for goods. Secondly, the global community looks at the stability of the political and economic system of a nation to use its currency for important international transactions. Gold is excellent for such purposes. Money is accepted freely in exchange for all other goods. Even a socialist economy, where the price system does not play so important a role as under capitalism, cannot do without money. }, Address Measure of value: Money acts as a common measure of value. He cannot preserve his wealth in the form of cattle. One coin should not be superior to another. -ms-transition: all 0.3s ease 0s; Precious metals like gold and silver are always acceptable. } Hi there! 3999 Mission Boulevard, San Diego CA 9210, Talk to us through our

For instance, Euro tried to replace US Dollar as an international currency. It is well packed. But if I do not have it, exchange cannot take place. “Money is a matter of functions four - a medium, a measure, a standard, a store.”. English, Business, etc. -webkit-transition: all 0.3s ease 0s; Difficulty of storage: Money serves as a store of value. Economically, consumers depend on money for many reasons. However, for a currency to be accepted internationally, two major factors play a vital role. Thus, money includes coins, currency notes, cheques, Bills of Exchange, and so on. Price mechanism plays a vital role in capitalism. The quantity of money a country circulates purely depends upon how much gold reserve it has. It has become so important that the modern economy is described as the money economy. In mechanics, it is the wheel; in science fire; in politics the vote. You can hold money in your hand, but it's essentially worthless to you personally until you exchange it for something such as goods, services or even investments. A bank that needs money requests it from the Federal Reserve Bank, which deposits the money into the bank's account, with interest. But as days passed by, it was found to be unsuitable. Cognizability: The material used as money should be easily recognizable. -moz-border-radius: 5px;

Even paper money is ideal in this regard. But if there is money, he can sell his cattle, get money for that and can store his wealth in the form of money. Does this simplify or complicate matters? Medium of exchange: Money can be used for buying and selling goods and services. Crowther had defined money as “anything that is generally acceptable as a means of exchange (i.e., as a means of settling debts) and that at the same time acts as a measure and as a store of value.” An important point about this definition is that it regards anything that is generally acceptable as money. Some commodities are perishable, and some will lose their value. Three functions of money are: 1. Similarly, in economics, in the whole commercial side of man’s social existence, money is the essential invention on which all the rest is based. However, the global community believes that the United States follows higher standards comparatively. Money performs many functions in a modern economy. Again, suppose a man has diamonds. All people must accept a thing as money. Money is indispensable in an economy, whether it is capitalistic or socialistic.

Medium of exchange: Money can be used for buying and selling goods and services. Answer: Any currency could replace the U.S. Dollar as a global currency. wish you all the best, Great and so educative keep it up, thanks. If credit transactions were to be carried on the basis of commodities, there would be a lot of difficulties and it will affect trade. font-family: 'Roboto', sans-serif; We may describe one more form of money; that is, bank deposits that goes from person to person by means of cheques. But beyond the long list of its applications, the actual functions of money cover three general categories: The U.S. Treasury Department is responsible for printing paper currency and minting coins as it oversees the Bureau of Engraving and Printing and the U.S. Mint. Money is one of the fundamental inventions of mankind.

display: inline-block; border-radius: 5px; Though his statement surprised everyone, the idea of ‘one currency one world’ has been lurking in the minds of economists for many years.