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Chapter 3- Functions of Money
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This lesson describes different functions of money in greater detail with relevant examples.

Arpita Prakash
YouTuber NCERTs series initiator at Unacademy 'Educator of the Month' for Feb'19 CBSE 0.1% Merit Certificate holder in Mathematics

Unacademy user
mam pls explain the meanings of certain words like mahachaithniya. bcoz it will not make any sense of watching the video
Thanks for bringing it to my notice. I'll soon add up a glossary lesson.
Thank u so much for all the classes Arpita ma'am
Arpita Prakash
3 months ago
Pleasure :) https://t.me/arpiaqui7
Arpita Prakash
3 months ago
Note making part1 video done now https://youtu.be/77regqGJX0E
  1. FUNCTIONS OF MONEY o Medium of exchange o Unit of account ( value of G&S can be expressed in monetary units) Eg: Rupee being unit of money o Deterioration in purchasing power of money o Store of value for individuals DEFICIENCIES OF BARTER SYSTEM: Difficult to carry forward one's wealth Cashless society- economic state wherein financial transactions are not connected with money in the form of physical bank notes or coins but rather through the transfer of digital information between transacting parties DEMAND FOR MONEY: o Money-for conducting transactions o Larger the quantum of transitions to be made, larger the quantity of money demanded o Quantum of transactions depends on income o Rise in income leads to rise in demand for money o Rate of interest also determines how much money people keep in banks o Money demanded comes down at higher interest rates SUPPLY OF MONEY o Modern Economy- Money- Cash and Bank deposits o Different measures of money based on types of bank deposits o System comprises of 2 types of institutions- Central bank of economy and commercial banking system