Class 9 fmm notes , class 9 fmm | Chapter 2

 Hello guys these are the notes of chapter 2 of class 9 fmm. (Financial Markets Management) .

• Money is anything that is commonly accepted by a group of people for the exchange of goods, services or resources.

• People were busy worrying about survival - food, clothing, shelter etc. 

• Barter system - exchange of commodities for commodities.

•• Specialization - people become more skilled and can produce more things.

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Through specialization people's skills improved enabling each person, and hence the society, to produce more things of better quality. 

•• Trade - buying and selling of products and services is called trade.

•• Surplus is beyond your personal and household needs. Then the surplus is used in trading in order to acquire the goods and services produced by others. 

• If the surplus is more , then the individual will have more potential to acquire the goods and services. 

Notes of chapter -1 . 

•• Wheel of economic progress - 

1. Innovation

2. Invention

3. Creativity

4. Hardwork

•• Division of labour - labour become specialised and concentrated on certain activities.

•• In earlier times there was a less division of labour. Very few people used to do a lot things by themselves. 

•• The advantage of specialization and trade have been recognized for  a long period of time.

•• When Europeans saw the skills of hunting of red Indians and obtaining furs beyond their needs the Europeans gave difft goods to red Indians. This system was the barter system. 

•• However when society became larger then before the barter system become very complicated and cumbersome.

•• To solve this problem humans developed exchanging commodity money. 

•• A commodity is a basic item like salt, tea, tobacco, cattle and seeds etc. 

•• However using commodity was also problematic like it was becoming bulky and hard to carry the bags of commodities. 

•• It was difficult to store and perishable. 

•• Therefore people started using metal objects. 

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• Metal objects were introduced as money around 5000 BC. 

•• Earliest paper money dates back to China around AD 806.

•• Coins and paper money are the most commonly used forms of money. Money is also a currency. Indian rupees is Indian currency.

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