Macroeconomics - Notes and Essays - Economics Help.
Essay o Money: Definition, Function, Significance and Defects! Essay on the Definition of Money: Money could be defined as follows: Money is anything that possesses general acceptability as a medium of exchange and a measure of value; and performing all other functions which it should perform for a smooth and orderly functioning of the economic system.
Money is the essential monetary transaction that people use every day. Without Money, there will be no marketing and economy in human kind. Money acts as a fundamental medium of exchange which clears up both humanity’s past and present obligations. Economists define money as widely accepted by society and acts as payments for goods and services.
That money remains one of the most important things in life is an obvious fact. It helps to survive buying things that are needed to meet the basic human needs: food, clothes, etc. Sometimes, people earn a lot of money and need to save them; sometimes, people need to make a purchase but cannot afford it.
Essay on Money: Evolution, Types and Qualities! Evolution (Development) of Money: The introduction of money as a medium of medium of exchange was one of the greatest inventions of mankind. Before money was invented, exchange took place by barter, that is, commodities and services were directly exchanged for commodities and services.
In the present economic situation, the prices of different goods and services are always increasing everyday. Money has become quite hard to earn. Therefore, many people are looking for ways to save their money. In my opinion, as a housework, I think saving money at home is one of the best ways to save our money.
In the classical Writings of Adam Smith and others, Economics is considered a handmaid of Ethics, but in the modern technology Economics is a handmaid of Finance. Economic activity relates to the real world of physical goods, and services while Finance relates to the money world.
M1 is the most often referenced money supply by economists who use it to show the amount of money that is circulating through the economy. Inflation, supply and demand, interest rates and the state of the economy all play a factor in how and where people choose to hold their assets as well as how they decide to use those assets.