MONEY

BARTER SYSTEM

+1s a sy8tem hete cxchonge godds dor ood3 tarc placeg

withou+ use omone

C-c economy (commodity to Commbdit)
+ s alSo called

there ckis+s double

d celteH SyStcm can only woT ctit when

0ants.
eoinci den ce

DrawbackS Basyte SH8tem/imitaions

4. Double Coincidence q wwats -1+ otejers to simultoncDusuiment

and selles.1+ icods to

mutal watS o buyeS

hgerading coS+
no
2LaCE o common meosuoe Value nbas}teaj SyStem thexe is

no common mease (unit) q1 valuL. Evenbuyes and

selle egch. 0ther

commpoity ho ppen to meet the
,
pro ble
gt'scs 'n whot
poporion the tuoo gcods ane to be txchong ed.
3
Conractua
LOCEo Standasld o c poyments 5ond dejerTed pay me
Onde ooster CTedít
SyStem tronS acHon edwing uture
uture
payme conot ae pace due to
disagsec ment Teading
th
tha
dualitH valu the broduet o ems oepayment
 ot
4.LocE o StoHe Value-In botte syStem peopie
4.LocE conn

g codS
StoSte the volue
oacods becouse majorit
When StoTed CGHe ul
cither won ou+ become leSS

MONEY

Money is onything which u generotly occepted a

medium o exchonge, o volue,
mcasie Store ovaue
and meow standaxd dejered oymen
FUNCTIONS Of MONEY

PRIMARY FUNCTION SECONDARY FUNCTION

edium MeOSus¢ o Standad o StoTe value

xehanae o t Valué dederred payments

meanshat Can be used

Medium exchonge- 1+ money
to maca pay mentS, tor
auu h e o
rans action
8oods ond aeruíce.A
0dds buye can buy goods though
mo ney. + is
and Seller con Seil gc0ds or
money
an
an essentía unchon ot money

a a mca suTe o valu

2. Mea suHe oF value i- MOney serUeS
and he volua od CLUgo0dS and 8eruic
expresscd in terms o mone
money

3.Standard of Dejerred PaymentS-1t

18 a
runc#on o mone
belng widely acebted w0y to Value a debt there by
 and ServiceS a cqu Ted noud and paud
aDouDin
aoupingcods
gods

or he uture
as a Stose od volue meansha
tSt0Te _volue -Mon
mone
money can be used to ransher puTchosing
u a
poues drom Present +o
tutue Maney
Wa to StoTe weath

EVOLUTION OF MONEY

Money
MOney wOS evolved hrough ddrent Stoges accoraing

me place, and ciH cumstanceS,

Commod#y Money PAPER MONEY

Pyo 1930onuocejds m0S+ countrie
the calis et pciibd
human civiizatíon cny
have Shited o Papev money
CDrmmodity that was gener9 y das ound incoveinit eu weil
demand and chosen by con dang ero LsTcasy oid and siler
m mn co nsent, was used cot r e mblace fo p iace-
a money s and. confrollecd
megloied b
cemral bane o Country
METALIc MoNEY
R&EDIT MONEY
whhe rogmess human cruilh Creat mone is monctay
-Scuten commody money hange
ino Meto1e moncy value cTeated as thc recut
Metal Ute goid, Silve. crupcr osome uture cbigot0
hey could be O'T Ciaim

ec ty hondled gnd hei n Ex-Chedut

8 uot cuíty.aserüned. PIASTIC MONEY

money w
ates+ type Credit
n the oTm
PlastHc meney

eaTd and debi+ caHd

nd o Can eou male +rauLa cHBn

 FORMS of MONEY

1.Fiat Money and idsciay Mon

2 Full boded money and Credit mon
mon

which i issued b Order

to those
1.Pio+ Money -1+ skHers noney
the gover'men
authorit
Which ae
ond coinS peoble
Hincludes au notes

bound to accept a medíum exchon

egauy
those wich u accepted
to money
Fiduciay Money 1t i e e r s
becouse
rust betudec
a o medium enchange
Paye and payec

bosis trust not oD

Cheeus one accepted on he o
bosís prde h o ment
the any h e

in udhich
2.Fu Bodied Money-Fu bodíed money s he money

volue ed he Commodiy moncy is equal toha

acHua cUTTency ualu he moncy

valu
coins in earlfer times hod Some commodi+y
and mone volu

+hot money d ohíeh moneyt

Credit Money I+ Teje7S
valu more han commodity valu

and notes nooday in TOChcc

Coi
 MONEY SUPPLY

total t Stoc rooney held ba Pcople o

MOney Supply ters
a coun apooicula point o timc
Stnce 9oveame.mt and he banES co1epoduc.e. m riey
held them s hciud e d
heejore stoce d mone

fn money supp

moneySupp 1e
Principal combonents

OTHER DEPOSITS wITH RBI

CORRENCY HELD BY PUBLIC

It încludes deposi1s held bt

the R8)on beho1 ragn ban

Iconsists paper notes
Public inanciadinstiHow, world
and coi u held by the public. bonF ,IMf aouermet e c.

PeOPLE
DEMA ND DEPOSITS 0f
WITH COMMERCIAL BANE

Demand deposits ae hoLon a

Custent occouu deposi+S ouch

Os payable on demond. and it

Con be encoshed
by issung
Chedu c on dm of acco uu
ho lders

MEASURES Of MONEY SUPPLY

mcasures
The Reserve bou Indio have Ven o u r

money upply
M1 + is the irst meosols O money SuPP and u t alno

enocon trans a ction moneu . l+ is moS+ iouid

measm
omoney Supply a all t compone O
easiy
can used a mefium o exchonge (Novroo mone

&notcs with pubifc(c) + Demand deposi+s excludin

nter baue depasi+s) (DD) t other Deposite coth RB1 (oD)

2. Ma2 leas+ liquid c combagG *o M4

Ma Ma +Saving deposi+ wth þost ice saving

3. M3 Tuus Concept w bade a compare d to MA 6YOd hoy

Hg M4+Time deposi+s o aw commeycial bon (encluding

boue depos +s)
4- M4 1+ includes t o t deposins uoth Post oAaice saving bau

i'

M4 M3+Total deposits wth poSt ce sauin banenctuding

natjoua savi ng cetficcte)