Chapter 3 Part 1 - Money
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Chapter 3 Part 1 - Money
Last updated at April 16, 2024 by Teachoo
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
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
In this case, we had Barter System
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
