Cash Money
Money or Cash is anything that is for the most part adequate as a methods for installment in the settlement of all exchanges, including obligation. Money or Cash regularly characterized involves coins and paper money and request stores of banks.
Money or Cash is a medium, a measure, a standard, a store
A medium of Exchange: The utilization of cash as a typical medium of trade has encouraged trade incredibly. Without cash trade will include an immediate bargain for products and ventures.
A unit of account: Money generally fills in as a typical unit of account or measure of significant worth for which all merchandise and enterprises are communicated. This makes possible meaningful accounting system.
A standard of deferred payment: Money additionally fills in as a standard or unit for future payments are stated. This applies to payments of installments of interest, rents, pay rates, benefits, protection premium and so forth.
A store of value: This function is derived from the use of money as medium of exchange in two fold manner. As because it’s easily exchangeable property money is unique as a store of value in that it alone is perfectly liquid.
Money consists of coins, paper currency and deposit money. The intrinsic value (Metallic value) of token coins is less than their face value. Paper currency have no intrinsic value of their own. They are not convertible. Deposits are only entries in the books or ledgers of banks to the credit of their holders.
Another useful distinction is between
- a) Legal Tender/ Flat Money- It may be limited or unlimited. Coins and currency notes. Small Coins are limited and currency rates are unlimited legal tender.
- b) Non legal Tender or credit money paper-
