Check sibling questions

What we will Study in this Chapter?

We know that name of chapter is 'Money and Banking'

So, This Chapter has 2 parts

In this part, we will learn about Money

Then in next part, we will learn about Banking

 

What is Money?

It is a medium of exchange in forms of coins and banknotes

When we sell goods, we exchange goods for money

When we buy goods, we exchange money for goods

So it is a medium of exchange

What is Money - Teachoo.JPG

What happened during the time when there was no money?

In this case, we had Barter System

What happened in Ancient Times - Teachoo.JPG

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Transcript

What is Money Suppose you go to a Shop to buy a 5 Star Chocolate What Transaction Occurred in this case? Customer exchange Money to get ChocolateShopkeeper exchanges Chocolate to get Money What is Money ? It is a Medium of Exchange in form of coins & bank notes When we buy goods, we exchange money for goods When we sell goods, we exchange goods for money What happened in Ancient Times When there was No Money? We had Barter System Example Suppose a Mango Farmer wanted to purchase Jewelry for his wife He gave 1000 mangoes to Jeweller and in return purchased one necklace Farmer Grew Mangoes 1000 Mangoes 1 Necklace Jeweller sold Jewellery What is Barter System? Exchanging one commodity with other without mediation of money

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Davneet Singh

Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 12 years. He provides courses for Maths and Science at Teachoo.