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Money and Banking Notes Money & Banking Money :- Money is something which facilitates the transaction of goods and services. Barter system of exchange :- Barter system of exchange is the system in which commodities are exchanged for commodities. This is also called commodity for commodity exchange economy. Difficulties of Barter System of Exchange :- i. It requires double coincidence of wants which is a rare occurrence. ii. It lacks a common unit of exchange. iii. It lacks the system of future payments or deffered payments. iv. It lacks the system of storage of value. Definition of Money :- Legal Definition :- Money is anything declared by law as money Functional Definition :- Money is anything that acts as a medium of exchange, measure of value, store of value and standard for deferred payments. Classification of Money :- It is classified on the basis of value of money as money and value of money as commodity as following :- 1. Full bodied money. 2. Representative full bo...

Q.What is Goods and Services Tax (GST)? A.GST stands for “Goods and Services Tax”, and is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. Its main objective is to consolidates all indirect tax levies into a single tax, except customs (excluding SAD) replacing multiple tax levies, overcoming the limitations of existing indirect tax structure, and creating efficiencies in tax administration. Simply put, goods and services tax is a tax levied on goods and services imposed at each point of sale or rendering of service. Such GST could be on entire goods and services or there could be some exempted class of goods or services or a negative list of goods and services on which GST is not levied. GST is an indirect tax in lieu of tax on goods (excise) and tax on service (service tax). The GST is just like State level VAT which is levied as tax on sale of goods. GST will be a national leve...

Q.Why Can’t We Just Print More Money To Solve Our Financial Problems? A.With so much apprehension around jobs, unreasonable wages and soaring prices, an individual uneducated in the intricacies of economics might simply suggest printing more money to assuage our ever-turbulent money problems. Money is meretricious in nature. The thin paper without the hues of green smeared on it is absolutely worthless, like any rectangular cutout from an empty diary. However, the colorful emulsions printed on it by pinioning it to a shiny plate transform it into the most coveted object in our society; even time fails to compete. In a sense, the amount of money circulating in an economy can be thought of as energy. The amount is a constant throughout a given period of time. However, unlike energy, we aren’t stuck with a limited amount. The restriction on the creation of new and more energy isn’t applicable to money, as we can print more… infinitely more, in fact. I...