Money Article

• Money: A thing which is commonly accepted as a medium of exchange is called Money.

Example:- A rupee in India is money, as it is a commonly accepted medium of exchange here. Likewise Dollar in USA.

History:- In older Days, Goods were exchanged for goods. There was no money. Thus a cobbler would make shoes in return for wheat from the farmer; A farm worker would get grains as a reward for his Labor, and so on this system of exchange was known as barter system.

Type of Money

1. Flat Money:- Flat money refer to the money which is issued by order/authority of the

Government is called Flat Money.

2. Full Bodied Money:- Full bodied money refer to the money in term of coins whose commodity value is equal to the money value as and when these are issued is called Full Bodied Money.

3. Supply of Money:- Supply of Money is a stock concept. it refers to total stock of money held by the people of country at a point of time is called Supply of Money