VELOCITY OF MONEY

Velocity of Money

Velocity of Money

Functions of Money in the Economy

1. Money as Measure of Value:

In money finances standards of all products are conveyed in periods of money. Money is like the backyard attach of piece of cloth merchant, as yard-stick assesses all diversity of piece of cloth, money assesses the worth of all diversity goods. This function of money makes transactions very easy and furthermore equitable (Rahn, 2002).

2. Money as a matching of work and production:

In everyday life in the nonattendance of money, it is unrealistic to persuade even the simplest human desires in nourishment, dwelling, security and wellbeing ...