Monday, January 24, 2011

role & importance of money in modern economy

There is no doubt that money facilities and motivates all economic activity relating to consumption, production, and exchanges & distribution.
Money enables a consumer to maximize his satisfaction.
Money measure the intensity of desire of consummates.
Money facilities production by stimulating saving & investment.
Money gives mobility to capital & helps in capital formation.
It enables the harnessing various factors of production, so that the entrepreneurs is able to maximize profit.
Money facilitates exchange & helps in both trade and commerce both national & international.
Money helps price mechanism to allocate resources.
Money accelerated the process of industrialization.
Money is an extremely valuable social instrument which has largely contributed to the growth of national wealth & social welfare.


  1. Money is important but it is not an alternative to a good health. Choose a best bank and let it handle your financial issues, while you sit back and enjoy your life.

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  2. i also need to know importance of money supply

  3. Can you tell me the roles of money in combating unemployment??

  4. role of money in planned economy

  5. Explain the role of money in modern economy briefly