discuss in brief how money has helped in the operation of our economic activities
Answers
Economic development is generally believed to be dependent on the growth of real factors such as capital accumulation, technological progress, and increase in quality and skills of labour force. This view does not adequately stress the role of money in the process of economic development.
It is said that money is a mere veil and intrinsically unimportant. What matters is the real goods and productive factors which money buys. However, this extreme view about the unimportance of money as such is no longer believed. Not only is money an important factor without which modern complex economic organisation is impossible, but it is also an important factor for promoting economic development. We discuss below the importance of money in the process of economic development.
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Explanation:
A monetary economy is one in which goods are sold for money and money is used to buy goods.Money promotes productivity and economic growth.This raises the demand for money to finance about by the expanded level of economic activity.
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