Functions of Money :
Money is what money does. Money discharges Five functions.
Some to a greater extent than of import points near Money are….
- RBI deals alongside 3 monetary aggregates. M1, M2 in addition to M3.
- M1 in addition to M3 are known equally “Narrow Money” in addition to “Broad Money” respectively. M4 is dropped.
- M0 is reserve money ; M0 = Currency inward circulation + Other deposits alongside RBI + Cash Reserves.
- M3 increase inward Republic of Republic of India is 17% for 2009-10. M3 = M1 + Net fourth dimension deposits of Banks.
- Decimal organisation of Coinage started inward Republic of Republic of India on 1st Apr 1957.
- Rs ii in addition to higher upwards currency in addition to coins are issued past times RBI but printing of Rs 1, ii in addition to five notes were discontinued.
- Currency notes past times RBI are issued equally per Minimum Reserve System 1957 according to which Rs 115 Cr. worth Gold in addition to Rs 85 Cr. worth Foreign securities to hold upwards kept equally reserve.
- Paper Currency was introduced inward Republic of Republic of India inward 1882.
- Indian Rupee Coin was introduced during the regin of Sher Shah Suri (1484 – 1545 AD).
- Barter organisation existed inward ancient times which agency telephone commutation of goods in addition to services for goods in addition to services.
- There are xv languages on 10 Rupee Note. thou Rupee currency notes are inward circulation since October ninth 2000 later gap of 22 years. Parliament approved the mining of Rs 10 money on 11th August 2011. Coins of Rs ii in addition to Rs five are inward circulation since 1990.
- Indian Rupee is a token money. Indian rupee is accepted equally legal tender inward Nepal in addition to Bhutan.
- Y.V.Reddy, RBI working grouping on money supply, has introduced a novel concept “Liquid measures i.e., L1, L2, L3 on 23-06-1998.