CBSE Class 12 Macro Economics Chapter 3 - Money and Banking Revision NotesMoney is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts , such as taxes , in a particular country or socio-economic context. Money is historically an emergent market phenomenon establishing a commodity money , but nearly all contemporary money systems are based on fiat money. The money supply of a country consists of currency banknotes and coins and, depending on the particular definition used, one or more types of bank money the balances held in checking accounts , savings accounts , and other types of bank accounts. Bank money, which consists only of records mostly computerized in modern banking , forms by far the largest part of broad money in developed countries. The word "money" is believed to originate from a temple of Juno , on Capitoline , one of Rome's seven hills. In the ancient world Juno was often associated with money.
Chapter - Money and banking (Macroeconomics) highly anticipated notes
Chapter 13 - Money and Banking
You need to dedicate a significant time along with proper efforts. Producing or using counterfeit money is a form of fraud or forgery. Double coincidence of wants implies that needs of two individuals should complement each other for the exchange to take place. Varying reserve ratios The reserve ratio noges the reserve requirements, wherein banks are liable to maintain reserves with the central bank.
Black markets and illegal activity overseas also are usually conducted in dollars because they are such a stable form of currency. Usually, such as the Federal Reserve System in the U, New York. RS Aggarwal Solutions. Wright was born in in Rochest.
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This is a textual description of commercial bank, credit creation by commercial bank, central bank and its functions. Commercial bank is a financial institution which performs the functions of accepting deposits from the public and making loans and investments, with the motive of earning profit. Let us also assume that all receipts and payments in the economy are routed through the banks. One who makes payment does it by writing cheque. The one who receives payment deposits the same in his deposit account. The banks use this money for giving loans.