2. Money is that thing that 1. It has a medium of exchange. 2. It has a standard of value. 3. it has a store of value. 4. A standard of deferred payments. 5. A measure of transferring value. 6. A unit of account. 7. A most liquid asset. 8. A base of credit instruments. 9. A base of Government payments. 10. A base of economic development.

3. There are three kinds of money named are, 1.Mettalic money. 2.Paper money. 3.Credit money.

4. That money which are made from different metals like gold, silver, nickel etc. Two types of metallic money, 1. Standard metallic money. 2. Token metallic money. “System of metallic money” A.(Monometallic) 1.Gold currency standard 2.Gold bullion standard 3.Gold exchange standard B.(bimetallism)

5. The paper money means that money made with paper. This money issued from by the government. this money issued under country laws. There are two types of paper money. 1.Convertible paper money 2.Inconvertible paper money ADVANTAGES 1.Savings of precious metals. 2.Easy to transfer. 3.Easy to identification. 4.Savings of coins making. 5.Availance of demanded quantity. 6. Bank ‘s advantages. 7. Government advantages.

6. 1.Problem of population explosion. 2.Lack of value. 3.Unequal distribution of wealth. 4.Problem in international transaction.

7. The amount of money which is borrowed or loaned out to a person is called credit money. CREDIT INSTRMENTS: 1. CHEQUE 2. BANK DRAFT 3. CREDIT CARD 4. GOVERNMENT BONDS 5. BILL OF EXCHANGE.

8. 1. Easiest safest medium of exchange 2. Easy transference of money 3. Development of trade and commerce 4. Convenience in foreign payments 5. Encouragement of young entrepreneurs 6. Growth of saving and investment 7. A source of income for banks 8. A source of financing public projects

9. 1. THE PROBLEM OF INFLATION 2. ESTABLISHMENT OF MONOPOLIES 3. ECONOMIC INSTABILITY 4. INAPPROPRIATE USE OF CAPITAL

10. 1. NEAR MONEY 2. LEGAL TENDOR MONEY 3. OPTIONAL MONEY 4. MONEY OF ACCOUNT. 1. NEAR MONEY 2. LEGAL TENDOR MONEY 3. OPTIONAL MONEY 4. MONEY OF ACCOUNT.

11. AIMAN