Importance of Money

Money is something that is generally accepted as a medium of exchange. It is an instrument that serves as a medium of exchange, a measure of value, a store of value and a standard for deferred payments.

When an economy develops, there is an abnormal increase in economic transactions. Because money is generally acceptable, it is indispensable as a medium of exchange.

Functions of Money

The following are some Importance of Money:

Importance of Money

  1. It facilitates exchange beyond limits.
  2. It facilitates the accumulation of assets for investment purposes.
  3. It facilitates the flow of capital from one place to another within and outside the country.
  4. It helps in economic stability and promotes the growth of the nation.

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