Essay about money advantages and disadvantages
What are the Advantages and Disadvantages of Money?
Article Shared by Read this article to learn about Advantages and Disadvantages of Money! Paper essay about money advantages and disadvantages has got several advantages and disadvantages. The following advantages can be mentioned: Currency notes, therefore, are the cheapest media of exchange. If a country uses paper money, it need not spend anything on the purchase of gold or minting coins. The loss which a country suffers from the wear and tear of metallic money is also avoided. Paper money is the most convenient form of money.
A large amount can be carried conveniently in the pocket without anybody knowing it. It possesses, in a very large measure, the quality of portability which a money material should have. In a very small bulk, it can contain a very large value. Think of a currency note of Rs. One essential quality in money is that it must amd exactly of the same type. Even among the coins there are good and bad coins. But currency notes are all exactly similar. It is, therefore, a very advantsges medium of exchange.
The value of paper money can be kept stable by properly regulating its issue. Paper money is absolutely elastic. Its quantity can be increased or decreased at the will of the currency authority. Thus paper money can better meet the requirements of trade and industry.
Everybody knows the value of money. The rich often depend on it to oppress the poor and millionaires sometimes treat their servants with great cruelty. If our parents are wealthy and powerful we may be sent abroad to study. There are two viewpoints about the pocket money.
Money in the form of currency notes can be cheaply remitted from one place to another in an insured cover. Paper money is of very great advantage to the banks. They can keep their cash reserves against liabilities in this form, for currency notes are full legal tender. A modern war cannot be prosecuted by taxes or loans esday.
All governments have to resort to the printing press. In essay about money advantages and disadvantages years in India there has been great inflation. We must remember that by this means our Government has been able to spend hundreds of crores of rupees on various ambitious programmes of development. Hence within limits the issue of paper money comes very handy to the government at the time of dire need.
Disadvantages of Paper Money: But monye cannot overlook the disadvantages of money: Gold and silver coins are accepted even by foreigners, as they have got some intrinsic value. Fire may burn it; if the place is flooded, it is gone; it may also be eaten up by white ants.
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There is always a danger of its over-issue when the Click here is in financial difficulties. The temptation is too great to be resisted. Once this course is adopted, however, it gathers momentum and leads to further note-printing, and this goes on till the paper currency loses all value.
It looks like nothing was found at this location. Both your credit card statement and the credit card company can vouch for the fact that you have made a purchase if the original receipt is lost or stolen. Some people think that giving children pocket money will make them become luxurious. Paper money is absolutely elastic. Thanks to money we can improve our spiritual activities easily. Everybody knows the value of money. Don't loan your credit or give out your credit card information to anyone but reliable companies. The Importance of Managing Money Classes:
This happened in various countries in recent times: Some of them are: As a result, labourers and people with fixed incomes suffer greatly. The whole public feels the pinch.
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This leads to the export of gold from the country, which is not a desirable thing. Its balance of payments becomes unfavorable.
The rate of exchange falls. More home money will have to be paid to buy units of advanhages currencies.
Self-study: advantages and about money disadvantages essay Professional
Really, paper money, if it is issued link regulated carefully, is without any disadvantage. All countries issue paper currency, and, in normal times, they do not suffer from it in any manner.
Only when it is over-issued, it becomes a great danger and a curse. It may cause grave discontent among the masses. When paper money is over-issued, there is inflation and prices rise. It hits hard several important sections of the people like workers and fixed- encomiasts. The people might lose confidence in the currency and it might become useless. Such a situation arose in many European countries during and after World War I, and later more recently in China. It is remarkable that Indian Mnoey was able to control inflation, whereas even countries like the U.