can anyone give me important plot of money and credit
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money- it is defined as the medium of exchange for any transactions. collateral- the property owned by the borrower that is given to the bank until loan is repaid. no any institutions can print notes without the permission of government. In India RBI *(reserve bank of India ) can only print notes and the notes printed by the RBI cannot be refused to be used as a medium of exchange.
nkmarvel:
thnx for that
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financial system, are important parts of our economy.
The financial system enables ‘real’ activity – that is, the processes of production and trade of goods and services – to take place smoothly.
Financial activity is thus part and parcel of economic growth and improvement in overall living standards.1
Money itself is not a modern innovation. Records of money date back 5,000 years to the Babylonians, who distinguished legally between ‘exchangeable goods’ and ‘non-exchangeable goods’. Exchangeable goods included precious metals as well as certain commonly used goods such as oil and wine. It is likely that these exchangeable goods were used as means of exchange. The origins of money probably go back even further than this – beyond written history, with the use of cattle around 10,000 years ago.2
Over time, money has taken different forms. It has ranged from objects of inherent value, such as precious metals (commodity money), to tokens backed by reserves of a defined object of inherent value such as gold (for which the tokens may be redeemed), to the ‘fiat’ money in the form of the notes and coins in circulation today.
Unlike commodity money, fiat money has no intrinsic value. Neither is it backed by something else of value. Fiat money is established as money by government or official order or decree.
Its effective use as money derives from its acceptability as payment for goods or services. Items other than fiat money can also be used in practice as money if both parties agree to a different sort of payment beforehand. Recognising this economic function of money, we consider money today as generally comprising both physical fiat money in the form of notes and coins, and electronic records of claims on financial institutions (such as banks) that are transferable to others and that are usually accepted as payment for goods and services.
The financial system enables ‘real’ activity – that is, the processes of production and trade of goods and services – to take place smoothly.
Financial activity is thus part and parcel of economic growth and improvement in overall living standards.1
Money itself is not a modern innovation. Records of money date back 5,000 years to the Babylonians, who distinguished legally between ‘exchangeable goods’ and ‘non-exchangeable goods’. Exchangeable goods included precious metals as well as certain commonly used goods such as oil and wine. It is likely that these exchangeable goods were used as means of exchange. The origins of money probably go back even further than this – beyond written history, with the use of cattle around 10,000 years ago.2
Over time, money has taken different forms. It has ranged from objects of inherent value, such as precious metals (commodity money), to tokens backed by reserves of a defined object of inherent value such as gold (for which the tokens may be redeemed), to the ‘fiat’ money in the form of the notes and coins in circulation today.
Unlike commodity money, fiat money has no intrinsic value. Neither is it backed by something else of value. Fiat money is established as money by government or official order or decree.
Its effective use as money derives from its acceptability as payment for goods or services. Items other than fiat money can also be used in practice as money if both parties agree to a different sort of payment beforehand. Recognising this economic function of money, we consider money today as generally comprising both physical fiat money in the form of notes and coins, and electronic records of claims on financial institutions (such as banks) that are transferable to others and that are usually accepted as payment for goods and services.
thnx ur genius
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