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.

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