hiring content writers
to work from home
Importance of Money & Role of money in functioning of an economy
Posted Date: 11-Mar-2010
Mohammed Julfekar Haider
Importance of Money; Role of money; Role of money in smooth functioning of an economy
Importance of Money:
Modern economy is a money economy where all exchanges take place through money. Satisfaction of human wants is possible with a help of money. The intensity of want and the attainment of utility can be measured easily with the help of money. All economic activities relating to production, distribution, consumption etc can be motivated by money. Savings and investments can be made in the form of capital information. Thus, money is important in the dynamic society for everything.
Role of money in smooth functioning of an economy:
Money helps in the smooth functioning of the economy in the following ways:
Introduction of money eliminates all the inconveniences of barter system.
It provides purchasing power, to buy goods and services and factors of production directly.
Remuneration to all factors of production can be made in terms of money.
By using money as a unit of accounts, debits and credits of transaction can be maintained in an economy.
The performance of the country can be measured in terms of money.
Money acts as a standard of deferred payment, so future transactions can be easily made.
National Income can be distributed in terms of money.
Trade and Commerce are facilitated by money.
It facilitates specialization and division of labor.
Savings and investment can be made in the form of money.
Did you like this resource? Share it with your friends and show your love!
Responses to "Importance of Money & Role of money in functioning of an economy"
No responses found. Be the first to respond...
Notify me by email when others post comments to this article.
Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
No HTML formatting and links to other web sites are allowed.
This is a strictly moderated site. Absolutely no spam allowed.
to fill automatically.
(Will not be published, but
to validate comment)
Type the numbers and letters shown on the left.
Functions of Money
Types Of Software
Return to Resources
Post New Resource
Post resources and
Functions of Money
Evolution of Money
Inconveniences of Barter System
Program for RETRIEVING DATA WITH URL’s
Tag posting guidelines
Subscribe to Email
Get Jobs by Email
Forum posts by Email
Articles by Email
Awards & Gifts
Last 7 Days
ISC Technologies, Kochi - India. Copyright © All Rights Reserved.