How to achieve goals with money
HOW TO ACHIEVE GOALS WITH MONEY
DEFINITION OF MONEY
MONEY is anything that is generally acceptable as a medium of exchange for goods and services.
Anything that is acceptable as medium of exchange can be called money
MONEY is the only commodity that is good for nothing but to be gotten rid of.People will do almost anything for money and money will do almost anything for people.money is captivating,circulating and masquerading puzzle.
THE FUNCTIONS OF MONEY
MONEY is what money does.Anything that performs the function of MONEY is money
MEDIUM OF EXCHANGE Money is medium of exchange.It is usable in buying and selling of goods and servicse.A worker in a bagel bakery does not want 200 bagel per week .Nor does the bagel bakery wish to receive say ,fresh fish for its bagel.However,money is readily acceptable as payment.
MONEY is also a measure of value.Soceity uses monetary unit as yardstick for measuring the relative worth of good and services..Money as a common dominanator means that the price of each product need be stated onlyinterm of the monetary unit.
MONEY serves as store of value..Because money is the most liqiud ,the most spendable of all assets..
THE MAJOR COMPONENTS OF MONEY SUPPLY ARE.PAPER MONEY AND CHEQUABLE DEPOSITS.
QUALIYIES OF MONEY.
MONEY is durable.
MONEY is generally acceptable.
MONEY is legal tender. Our confidence in the acceptability of paper money is because government says they are money.
MONEY is scarce.MONEY derives its value from its scarcity relative to its utility.
WHY WE HOLD MONEY.
People want money as amedium of exchange to conveniently negotiate the purchase of goods and services.Households must have enough money on hand to buytheir needs.Business needs money to pay for labour materials power and so on. All such purpose is called transanction demand for money.