Topic  -  MODERN FORMS OF MONEY



Before the introduction coins, a variety of objects was used as money,
For example, since the very early ages, Indians used grains and cattle as money. Thereafter came the use of metallic coins.
Currency
Modern forms of money are include currency including paper notes and coins. The modern currency is without its own use. In India, the reserve bank of India issues currency notes on behalf of the central government. In India rupee widely accepted as a medium of exchange. It is accepted as a medium of exchange because the currency is authorized by the government of the country. No other individual or organisation is allowed to issue currency.
Different countries different currencies
i)                    US - dollar
ii)                Britain - Pound Sterling
iii)             Canada - Canadian dollar
iv)             Singapore - Singapore dollar
v)                Srilanka -  Srilanka Rupee


Deposits With Banks
  • ·         Deposits money in Banks People needs only some currency for their day-to-day needs.
  • ·         People deposit the extra money with the banks by opening a bank account in their name.
  • ·         Banks accept the deposits and also pay an interest rate on the deposits. In this way people's money is safe with the banks and it earns an interest.
  • ·         People also have the provision to withdraw the money as and when they require. Since the deposits in the bank accounts can be withdrawn on demand, these deposits are called demand deposits.


Cash And Cheque


  • ·         A deposit in a Bank offers the customer the facility of issuing cheques.
  • ·         A cheque is a paper instructing the bank to pay a specific amount from the person's account to the person in whose name the cheque has been made.
  • ·         The recipient of the cheque can deposit it in his own account in his bank.
  • ·         The money is transferred from one bank account to another bank account in a couple of days.
  • ·         The transaction is complete without any payment of cash.
  • ·         This is a safe mode of transferring money avoiding the possibility of any theft.


Role of RBI
  • ·         RBI Issuing Currency Note (Currency Authority)
  • ·         Banker to government Banker's bank cum supervisor
  • ·         Collection of data and Monetary regulation and
  • ·         Exchange management and control publication.


Conclusion
  • ·         Today most of the people use credit cards, debit cards, cheques, etc.
  • ·         The uses of online banking services have also become common.
  • ·         Today cash machines, or ATMs, are the most popular method of withdrawing cash for most personal customers.
  • ·         Therefore over time money has been available to us in different forms and each form is convenient than other dealing.
  • ·         And with time we will find more new forms of money which will open up new possibilities of experiences with money.

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