What is government allocation and collection of money within the state?
It is Fiscal Policy. This deals with the collection of money and where it will be used by government. It is government that decides where to allocate money that it has collected through taxes. It could education, infrastructure, healthcare or law enforcement among others.
What is the most common way for the government to raise money?
The most common way for a government to raise money is through the collection of taxes.
What is the study of the ways in which money is created and used in society?
Economics is the study of the ways in which money is created and used in society.
What are important advantages of money?
Money helps in maximising consumers’ satisfaction and producers’ profit. It helps and promotes saving. 4. Money promotes specialisation which increases productivity and efficiency.
How can money be used?
Money can be utilized in many ways but we can sum it up into 4 simple acts: spending, saving, investing and giving. Let us go through them one by one so we can discuss how to be smart with each of these uses. Spending. Let us start with the real reason why we are earning money – to spend it.
Which of the following is a secondary function of money?
They are medium exchange and measure of value. Secondary functions include standard of deferred payments, store of value and transfer of value. Contingent functions cover distribution of income, measurement and maximisation of utility.
What are the different measures of supply of money?
There are several standard measures of the money supply, including the monetary base, M1, and M2. The monetary base: the sum of currency in circulation and reserve balances (deposits held by banks and other depository institutions in their accounts at the Federal Reserve).
What are the two forms of money that can be deposited into an account?
There are several different types of deposit accounts including current accounts, savings accounts, call deposit accounts, money market accounts, and certificates of deposit (CDs).
How many types of deposits are there?
Primarily, banks offer two kinds of deposit accounts. These are demand deposits like current/saving account and term deposits like fixed or recurring deposits.
What are the basic documents related to bank transactions?
Basic documents and transactions related to bank deposits
- -A CHEQUE BOOK contains a document called a CHEQUE that instructs a bank to pay whatever amount is indicated.
- -A DEPOSIT SLIP is a form used by somebody who wants to deposit a certain amount to an individual’s bank account.