The slides talks about different roles of money in our daily life. It also talks about Definition of money History of Money Components of money Jobs of money Slide prepared by Prabhav Jain | Ulti kitab

1. ROLE OF
MONEY
CHAPTER 1
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2. What is MONEY ???
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3. any object
accepted as
means of
exchange within a
society
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8. The Four Jobs of Money
Medium
of
exchange
Standard
of value
Store of
value
Standard
of
deferred
payment
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9. Medium of Exchange
❑People use money to
exchange goods
❑Money makes transaction
easier
❑ Money removes the need for
double coincidence of wants
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10. Measure of Value
Money measures values
of goods and service in
its unit of account.
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11. Measure of Value
A unit of account is a standard numerical unit
of measurement of the market value of goods,
services, and other transactions. Eg INR 100
for 1 kg
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12. Money is a financial asset
that can be used to store
wealth (income that you
have saved and not
consumed).
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13. HOWEVER
Inflation weakens
the ability of storing
value of money.
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14. Store of Value
If you could buy 100 units of
goods and services with INR100
in 1990, how many units you
might buy with INR100 in 2010?
Answer: you could have bought
just 50 units
During this period, inflation robbed
the purchasing power of money at
almost half of its earlier purchasing
power
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15. Standard of Deferred Payment
Future payments for current purchases
Buying now, paying later
Such as EMI Installments
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