Role and Importance of Money - Economicsconcepts.com.
Money performs many functions in a modern economy. The most important functions are given in the form of a couplet quoted below. “Money is a matter of functions four - a medium, a measure, a standard, a store.” Thus, money is a medium of exchange, a measure of value, a store of value, and a standard of deferred payments.One cannot deny the importance of money because it is the most necessary thing that we require. Just like you need food to live similarly you need money to survive. It is difficult to sustain without money as it is the basic necessity. In order to live a happy life, you need money. From buying the necessary stuff to paying the fee for your kids.Money plays a crucial role in the determination of income, output, employment, general price level and it is significant in the field of consumption, distribution, exchange, public finance etc. So it is worthwhile to know the meaning of money.
I believe that the way we approach our finances goes beyond that particular behavioral characteristic. In reality, I think our approach to finances can be viewed in more of a multi-dimensional setting, where money has a different role in each our lives. For some, money means survival, plain and simple. For others, money is something that is a.In addition to role of money as a medium of exchange, one can also observe the role of money as a store of value and measure of value for consumers. As in the monetary system with money the values of commodities can be estimated.
Donating more money to campaigns gains greater influence over politicians who are in office. To raise money for their campaign, politicians solicit donations from wealthy people and groups. Candidates have to raise and use private funds to finance their campaigns. Campaign staff, office space, advertisements, travel, etc., cost lots of money.
