12. ‘There is a downward trend in inequality world-wide with a rise in the average education levels’. ADVERTISEMENTS: The following points highlight the top six functions of money. These textbooks include six chapters each. A Medium of Exchange: The only alter­native to using money is to go back to the barter system. The modern economy cannot work without money. Economics XII. In the beginning of civilization the needs of people were very limited and therefore they used … The Origins of Money Chapter II By Martin A. Armstrong Money and the Evolution of Banking. For example, if the baker who supplied the green-grocer […] These test papers with solution are prepared by our team of expert teachers who are teaching grade in CBSE … Hence, we can say that nature of money is one thatfacilitates exchange. Thus, bank money has become the most important form of money in modern times because it is not only a very convenient form of money for large payments, but also eliminates risks and is durable. Share Your PPT File. 16. Class 12 Economics Money and Banking Important Questions. Metallic money was in use up-to the first half of 18 th century, however; after the 1930s, it also phased out due to increased volume of exchange and transaction. The Spanish  barilla was the first coin used, while the pesos fuertes were the first paper money used in the Philippines. Their weight made it difficult to use them during transactions, especially when long journeys were involved. It has undergone a long process of historical evolution. Macroeconomics Class 12 should be studied carefully to score good marks in the board examination of Class 12. Espicially I highlighted the major topics in the video so that, you can take help from my project. INR is Indian currency except that all other currency will be foreign exchange for India. After commodity money came the use of precious metals such as gold, silver, copper. National Income Accounting. Hi guys! At first, the family or village was a self-sufficient unit. Further, money is the most liquid assets among all our assets.It also has general acceptability as a means of payment along with its liquid nature.. Usually, the Central Bank or Government of a country creates and issues money. Engraved in each coin were its weight and the caliber of the metal used. CBSE Class–12 economics Revision Notes Macro Economics 06 Money and Banking class 12 Notes Economics. Before the Spaniards came, Filipinos made use of the barter ring as a form of payment during transactions. Economics XII. Money supply refers to the total stock of money of all types ( currency as well as demand deposits) held by the people of a country at a given point of time. Comment. Nowadays, use of paper money has almost become universal along with coins made of copper, bronze or nickel, etc. This marked the beginning of using paper money as a medium of exchange. Then, break up the class into groups of three. It has undergone a long process of historical evolution. Precious metals are also considered a form of commodity money. These are referred to as commodity money. Before money came into being, goods were exchanged for goods. Privacy Policy3. Before publishing your Articles on this site, please read the following pages: 1. The Evolution of Money. “Money can be defined as anything that is generally acceptable as a medium of exchange and at the same time act as a measure and a store of value”. Different Forms of Money Used in the Philippines: Create your own unique website with customizable templates. 15. The use of these precious metals gave rise to … After commodity money came the use of precious metals such as gold, silver, copper. This means that people change goods with other goods. Physics XII. Foreign Exchange It refers to the reserve of foreign currencies. Evolution of Money: As barter system was an inconvenient method of exchange, people were compelled to select some commodity which was most commonly accepted in that area as a medium of exchange. Ans: CBSE Class 12 Economics syllabus has two textbooks prescribed for students: Introductory Microeconomics and Introductory Microeconomics. However, barter system proved to be inefficient considering the increased wants and greater need of exchange. Computer XII. Bring out the need for on-the-job-training for a person. It is based on the four functions of money already discussed. Disclaimer Copyright, Share Your Knowledge Content Guidelines 2. This process was finally taken over by the state as one of its essential features and ultimately commodity money gave way to Paper Money which means currency notes. Primary Functions. Explain how investment in education stimulates economic growth. A producer of palay who wanted meat would therefore have to find a meat producer who wanted palay in return. a. 4. Economic development is generally believed to be dependent on the growth of real factors such as capital accumulation, technological progress, and increase in quality and skills of labour force. As SLR rises the banks will be restricted to pump money in the economy, thereby contributing towards a decrease in money supply. Definition of Money: “Anything which is widely accepted in payment of goods or in the discharge of other kind of payment obligations”. Money supply is measured in several ways which includes M1, M2, M3 and M4 measurement of money supply. Money and Banking. Money went through a long evolution before moving to a modern banking system with the convenience of paper money we use today. Welcome to EconomicsDiscussion.net! All Subjects; Grade XII Subjects. 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