What is Money? Explain its functions. Discuss the credit control measures of
monetary policy in India.
Answers
Answer:
Money is an economic unit that functions as a generally recognized medium of exchange for transactional purposes in an economy. ... Money originates in the form of a commodity, having a physical property to be adopted by market participants as a medium of exchange.
FUNCTIONS:
Money has three primary functions. It is a medium of exchange, a unit of account, and a store of value: Medium of Exchange: When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange
Explanation:
Answer:
Monetary policy refers to the credit control measures adopted by the central bank of a country. In case of Indian economy, RBI is the sole monetary authority which decides the supply of money in the economy.