Money

What is money

Money is a medium of exchange that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. It is instrumental in the exchange of goods and/or services and has general acceptability as a means of payment along with its liquid nature. Money is the most liquid asset among all our assets.

Importance of money

The importance of money in our lives is undeniable. Money is necessary to meet our basic needs such as food, clothing, and shelter. It is also important for our social and emotional well-being. Money can provide us with a sense of security and independence. It can also give us the freedom to pursue our passions and interests.

Money is also important for the economy. It allows businesses to invest in new products and services, which creates jobs and stimulates economic growth. Money is also important for governments to provide public goods and services such as education, healthcare, and infrastructure.

Role of money in society

The role of money in society is multifaceted. Money is used as a medium of exchange for goods and services. It is also used as a store of value and as a unit of account.

Money is important in the economy because it allows people to trade goods and services more efficiently than bartering. It also allows people to save for the future and invest in businesses.

Money can also be used to measure the value of goods and services. This allows people to compare the prices of different goods and services and make informed decisions about what to buy. In addition, money can be used to redistribute wealth through taxes and social welfare programs.

Types of money

1.Commodity money: This is the simplest and oldest type of currency. It is based on scarce resources such as gold or silver.

2.Fiat money: This type of money gets its value from a government order . That means the government declares this type of money as legal tender.

3.Fiduciary money: This type of money is backed by a promise of payment by the issuer but is not backed by any physical commodity.

4.Commercial bank money: This type of money is created by commercial banks through fractional reserve banking.

Block money

Black money is money that is earned through illegal means and is not reported to the government for tax purposes.

It is hidden from government authorities and is not reflected in the GDP of a country. White money, on the other hand, is money that is earned through legitimate means and is accounted for, for which income or other tax is paid.

In an ideal economy, all money that is transacted should be accounted for. Black money can be illegally disguised as legitimate money through money laundering.

Block Money affect economy

The existence of rapidly growing black money in an economy has grave and disastrous consequences. It creates an economic disparity in the country which undoubtedly is the basis of social disparity.

Such practices are the reason why the rich here are getting richer and the poor are getting poorer. The portion of a country’s income tied to black money affects the economic growth of the country.

Black money causes financial leakage, as unreported income that is not taxed causes the government to lose revenue. In addition, these funds rarely enter the banking system

Money management: Money management refers to the processes of budgeting, saving, investing, spending, or otherwise overseeing the capital usage of an individual or group. It is a strategic technique to deliver the highest interest-output value for any amount spent on making money

the top 10 most valuable currencies in the world are:

1. Kuwaiti Dinar (KWD)

2. Bahraini Dinar (BHD)

3. Omani Rial (OMR)

4. Jordanian Dinar (JOD)

5. Pound Sterling (GBP)

6. Cayman Islands Dollar (KYD)

7. Euro (EUR)

8. Swiss Franc (CHF)

9. Us dollar (USD)

10. Bahamian dollar(BSD)

Top 10 least valuable currencies in the world

1. Iranian Rial Rial

2. Vietnamese Dong

3. Indonesian Rupiah

4. Guinean Franc

5. Lao or Laotian Kip

6. Sierra Leonean Leone

7. Uzbekistani Som

8. Paraguayan Guarani

9. Cambodian Riel

10. Ugandan Shilling