Money and Banking
A) Money
1️⃣ Meaning of Money
Money is anything that is generally accepted as a medium of exchange.
2️⃣ Functions of Money
Primary Functions:
1. Medium of Exchange — Used to buy and sell goods.
2. Measure of Value — Helps in comparing value of goods.
Secondary Functions:
1. Store of Value — Can be saved for future.
2. Standard of Deferred Payments — Used for loans and credit.
3. Transfer of Value — Wealth can be transferred from one place to another.
3️⃣ Types of Money
● Commodity Money (gold, silver)
● Fiat Money (currency issued by government)
● Bank Money / Credit Money (cheques, digital payments)
B) Banking
1️⃣ Meaning of Commercial Banks
Commercial banks are financial institutions that accept deposits and provide loans.
2️⃣ Functions of Commercial Banks
Primary Functions:
A) Money
1️⃣ Meaning of Money
Money is anything that is generally accepted as a medium of exchange.
2️⃣ Functions of Money
Primary Functions:
1. Medium of Exchange — Used to buy and sell goods.
2. Measure of Value — Helps in comparing value of goods.
Secondary Functions:
1. Store of Value — Can be saved for future.
2. Standard of Deferred Payments — Used for loans and credit.
3. Transfer of Value — Wealth can be transferred from one place to another.
3️⃣ Types of Money
● Commodity Money (gold, silver)
● Fiat Money (currency issued by government)
● Bank Money / Credit Money (cheques, digital payments)
B) Banking
1️⃣ Meaning of Commercial Banks
Commercial banks are financial institutions that accept deposits and provide loans.
2️⃣ Functions of Commercial Banks
Primary Functions:
