Uses of Money
Money is any item of verifiable record that is accepted as payment for goods and services and also payment of debts in many countries. The money supply of a country consists of coins and bank notes. Bank money consists of records that are computerized, they may include money from saving accounts and checking accounts.
Money occupies a unique position in the modern economy when absent the whole prosperous economic life would collapse leading to problems. Just like food where you cannot live even for a few days without, money is very important because you cannot survive for long without it. Money helps in solving many problems in homes and even business markets. You will not face basic problems like food, shelter, and clothing if you have money because you will be able to buy any food or cloth you want without difficulties. You can have as many servant s as you wish and live like a king. With the money, you can buy all items of entertainment for you and your kids and make life comfortable in your home.
Money is a measure of value. It is, therefore, a basis of quoting and bargaining of prices because it measures the market value of goods, services, and other transactions. Money is a store of value, and for it to store value, it must be saved reliably saved, stored and retrieved. When is money retrieved it will then be used as a medium of exchange. Learn about compound calculator here!
Money has many advantages, as a measure of value or unit of account it solves the barters problems of absence of a common unit of value. Therefore, money helps in making the keeping of business account possible. Money helps in maximizing the satisfaction of consumers and producers profits hence business will run smoothly. It also helps in promoting saving which is significant. If it were not for money goods and services would have been exchanged through barter trade which is bulky and is accompanied with many problems because in barter. This is because in barter trade there is a language barrier which makes the exchange of goods and services difficulty. Know about apy formula here!
It helps in the promotion and specialization that increases productivity and efficiency. To get money people are required to work hard and thus leads to competition that is very crucial for development to take place. Make sure you plan properly and make a budget to prevent wasting money on activities that are not important. To read more about money, just go to http://www.ehow.com/personal-finance/money-managing/financial-planning/.