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Token that functions as
a medium of exchange
that is socially and
legally accepted in
payments of goods and
services and
in settlements of debts.
SHORTCOMINGS OF BARTER SYSTEM
Double Coincidence
Divisibility of commodity
Store of value
Transfer of value
Future Payments
MONEY - ADVANTAGES
Exchange
POWERS
Borrow
Or OF Storage
Loan
MONEY
Transfer
MONEY - FUNCTIONS
Contingen
Primary Secondary t
Standard of
Distribution
future
of income
payments
MONEY – MISC. FUNCTIONS
Index of repaying capacity
Bearer of options
Basis of modern market
economy
Credit and capital formation
Index of growth
Free society
Productivity
MONEY - TYPES
Representative
Credit Money
Money
Commodity
Fiat Money
Money
MONEY
COMMODITY MONEY
Commodity money’s
value comes out of
the commodity from
which it is made
Representative money is
money that consists of
Token coins, physical
token such as certificates
and even digital
certificates.
CREDIT MONEY
Credit money is any
claim against a physical
or legal person that
can be used for the
purchase of goods
and services
FIAT MONEY
Fiat money is any
money whose value is
determined by legal
means, rather than the
strict availability of
goods and services
which are named on the
representative note
MONEY - DRAWBACKS
Centralization of resources
Encouragement of loan taking
Trade cycles
Prestige issue
Group formation
Over capitalization
Money inflation
Moral evils
MONEY INFLATION - DEFINITION
According to Professor
C.Crowther
A stage in which the value of
money falls down and prices are
increasing up.
Deficient Financing
Commercial Policy
Taxation Policy
Increase in Cost
Increase in Demand
Slag in Production
Loose Administration
A GLANCE OF
MONEY INFLATION RATES
MONEY INFLATION - TYPES
CREEPING
[ <2%]
RUNWAY
[ 5 – 12 % ]
MONEY INFLATION – SOCIAL EFFECTS
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