8 Role of Money Discuss clearly the role of money in the eco

8. Role of Money: Discuss clearly the role of money in the economy and society. Please give detailed answer with examples and elaborations.

Solution

Money plays a major role in an Economy and society. It is the medium of Exchange, store of value and standards of deferred payments . It is a medium of Exchange as it is exchangeable with all goods in an Economy. As a medium of Exchange money facilitates transactions in an Economy. It makes the Economy barter free and turns it in to a monetary Economy . Money enhances peoples living Environment. It plays a major role in society,such as business, jobs education etc. Money helps in getting greater work out puts Higher quality of education can be achieved with money. People can build up new business or even invest in different markets. It improves the quality of living in a society. As people can afford to buy the necessary things to sustain their lives. It provides an efficient means of satisfying wants. For Example money enables people to decide which wants to satisfy,rank their wants and capacity and act accordingly..