Title 3. Money & Credit.pdf ✅

Poge Dote 4. Modern fo KMS of money loney-ie Som ething better thad can act as medium_ exchange in transaction Befbre the intso ductian Cain£,- a uariety_o abiects were used as maney For example, since the very easly ages Indias usedgsains and corttle, q maney then cameir qse of metallic coins -gold,eiluer, coppes coins But maderm farm of meney inettt include CUBeney of tuo types- papes notes andCains we se 5. Why isS money uced aS medium of exchange Q why m Oney iswidely expected as medum of exchonee Whyisem odexn faTmotmoneyliussency is pop uler modeiaf ex change Modexntoxm money cumency)whith include pap notes and Coinciknown alpper and_pci.se and widely expected as l mediumot exchange because a. It is ve3yconuin ientans siMple for buying any commodity which i onPale, b. It is accepted ar a medium ot exchange becau the cusEency i authorized by government of India C.In India, the_ ese sue bank_af India issuer cuTrency nateron behalf ofcentralgovernment aP Indiq So due to thi there is a lqw which legalizesi the use ot Tupee_ar medium di payment thct cannot be refured anyuhere in India. d No individual in India can legally dretuse payme ISSYe madein sup.eeeudhith incteases heuglue. Camlin BoardStudy

Page: Dote: ***-} The RBI monitors the banks in actually maintaini cash balance The RRL seer thot the ban k.e qive lognr nat jg topatit -makinq businecses andtraderr but_ Gso o small cutti uatoxc. C 10 Houdoee banke functions ? ND Peaple.ldeparita money in bank are called .depasitoxr aud mma ke withdxausrandgetinteret.dii Peaple ta ker loansfrom bank are called bosow e Gand epay ith interest Bankskeep mall_portion af deparits ari ee CAsh with themselver to_pay the deporitos who ithdxau money On gueh day. 2a 11 What irCKedit P is an_ aqKeement in uhich lende supply the 2a baxrowes with. the mohey fos the pso mire future pay ment_with interet Credit isalso called loan jntetest whi ch ie the CouKCe_of incame, Loan.rgiven ae eturned ed with huge Cbank The thveeiloan actiuitier_oxcaeditts activities _ d 2aban kiih India iG iii yo In India loansaegiven by ban ksu for uaziauc actiuitiesouti af which thxeermain oani activities ae Qr Uehicle loan 6. aEduc ation loan CHoucingand pes.conal logn 12 what axe tesm of cKedit 2 CLoan)= L Camlinn BoardStudy