Question

7 a) Define Money. Discuss the functions of Money.
b) Differentiate between Monetary Policy and Fiscal Policy.

Please answer this question kisi k pass hain toh aaj today is my paper long definition mein chaiyeh please kisi k notes mein hain toh 3rd part 1 ki economic ka Hai yeh question

​

Answer 1

hello I'm here produce you a best answer of the above said question.

starting with definition of money.

Money is said to be a part of exchanging anything with convenience. A way of getting things to pay something.,in behalf of it.

for example buying a kilo rice,a bread,a car etc. is a payable parts.Mean to give and take.here money is medium of exchange something to pay in terms of services or goods.

Functions of Money is as,

there is mainly 4 function of money which is as following,

1)Medium of Exchange

2)Measure of value

3)store of value

4)standard of deferred payment

B) Differentiate between Monetary policy and Fiscal policy.

Monetary policy- it is primarily concerned with the management of interest rate and total supply of money in circulation and it is generally carried out by the central banks, such as reserve bank of india.,looks after the circulation.

it is strategy used by the central bank to control and regulate the money supply in an economy.

it is also known as credit policy. and mainly concerned with the flow of money in the economy.

while Fiscal policy us concerned,

it is the policy relating to govt.revenues from taxes and expenditure on various projects.