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.
The following are some Importance of Money:
Importance of Money
- It facilitates exchange beyond limits.
- It facilitates the accumulation of assets for investment purposes.
- It facilitates the flow of capital from one place to another within and outside the country.
- It helps in economic stability and promotes the growth of the nation.