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Chapter 3- Introduction to money and banking
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This lesson introduces us the concept of money and banking with discussions on barter system and it's limitations.

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

Unacademy user
Sr pdf bhi provide kara do
m always confused about this terminology of economic but it's very easy for me to understand thank u so muchh...
thank u so muchh mam really appreciate ur work 👏👏👏
  1. MONEY AND BANKING INTRODUCTION: o Money- medium of exchange o Imp instrument for facilitation of exchange in case of more than one economic agent who engages themselves in transactions through his market o Barter exchanges- Economic exchanges without mediation of money double coincidence of wants o Need of intermediate good - money (selling and purchasing) o Principal role of money- facilitation of exchanges 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