With the ongoing fraudulent issues associated with counterfeit money, it is important to be familiar with the qualities of good money.To be able to perform the functions of money well, the money material must possess the following qualities: 1] Acceptability…

VI) Credit cards- Credit cards is a new concept of credit money which is gaining popularity among the rich. At the time of purchasing goods the buyer presents his credit card to the seller. The seller then prepares the sale…

credit instruement which transfers this deposit. Only the deposit itself is money. Therefore demand deposit is customary money and it has no legal status like currency notes. Most transactions today are carried on with the help of cheques and and…

IV) Paper money- Like coins, the exact time of introduction of paper money is not precisely known but it was introduced due to scarcity of gold and silver and other disadvantages of metallic money. Paper money was introduced as a…

III) Metallic money- is “money made of some metal”. With the drawbacks of commodity money and with economic advancement of the people, metals came to be used as money. This existed during the town economy stage or during the pre-machine…

I) Animal money- In the early days of civilization in the primitive farming communities’ money took the form of animals. Domestic animals like cows, sheep, goats, etc were used as money. Cattle occupy a place of pride as wealth. II)…

The difficulties faced in the barter system of trade were an obstacle to trade and development. A need was felt for a third commodity to be used as a medium of exchange. Therefore people experimented with different commodities. This led…

Before introduction of money, there existed barter system. It indicates exchange of goods and services with goods and services eg rice for cloth, milk etc. Primitive man had few and simple wants. He was self sufficient and independent and therefore…

Meaning and definitions Money may be anything chosen by common consent as a medium of exchange for goods and services, repayment of debts, and as a measure of value. There is no unique definition of money as it is very…

Enterprise or organisation is a business unit which undertakes production by bringing together the other three factors of production viz. land, labour and capital. The person who runs the organisation is the organiser or the entrepreneur. The organisation is the…