Class 9 Fmm notes, Chapter 3 | Key Characteristics of Money

 Hello guys these are the notes of chapter 3 of class 9 fmm. 

Key Characteristics Of Money

Functions of money :

1. Medium of Exchange : 

Money brings simplicity and organization to our economy. 

Earlier people used medium of exchange like salt, cheese and gold etc.

2. Standard of Value or a unit of Account

Money is a common item in which the process of goods and services can fit. 

Like : A pen would cost ₹ 5 , is the common standard value of the pen. 

3. Store of Value 

You can store money anytime and  anywhere. 

Suppose you received apples as money and you want to save them, then would you be able to save them for 1 year? 

No 

Whereas, if you have received ₹100 as money then you can save it for so long period. 

Notes of chapter 1

Notes of chapter 2

Money is easy and convenient to save. Therefore instead of commodities, metal coins and paper currency are used as money. 

Money simplifies the trading process. 

For more explanation, Click here

There are general characteristics for acceptability as money.💵💰

• Effective medium of exchange, it must be durable.

• Money should be relatively scarce. 

•  It can't be too less / scarce. 

• Money has to be easy to transport.

• Money must be divisible into usable quantities or fractions.

 

Guys if you are having any doubt, please ask in the comments section.