Skip to main content

Money

Money has become so much a part of our day to day activity that we have started to take it for granted. The complex economic system stands on the base of money because money is something which generally accepted as a medium of exchange.

Before the existence of money in this world there was barter system; an economic system in which goods and services were directly exchanged with goods and services. Difficulties like; lack of double coincidence of wants, lack of divisibility, lack of store of value, lack of common measure of value, limited specialization etc. in the barter system induced people to find a better way of exchange and ultimately led to invention of money which remove all the shortcomings and made the economic system very fast and productive.

The word money refers to that commodity which performs as the medium to exchange of goods and services, measuring value to factors of production, goods/services, common and useful means of credit transaction in business society and having quality of store of value of goods/services in the form of cash.

According to Hawtrey;” Money has two sides first it is a unit of account and second it is legal tender.”

According to Prof. Coalborn;” Money is the means of valuation and payment as both the unit of account and generally acceptable medium of exchange.”

According to Crowther;” Anything that is generally acceptable as a means of exchange and that at the same time acts as a measure and store of value.”


Labels:

Comments

Post a Comment

Popular posts from this blog

The Crossroads of the Nepalese Economy in 2026 AD

Forecast: Nepal's economic outlook for 2026 presents a mix of forecasts from major international institutions like the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB). These forecasts reflect a blend of optimism regarding structural resilience and concerns over ongoing political and social instability. The ADB projected a 5.1% GDP growth for 2026 in April 2025, driven by the revival of tourism and improved agricultural productivity. However, the World Bank later forecasted a 2.1% GDP growth for 2026 in November 2025, indicating a significant slowdown due to political unrest and weakened investor confidence. The IMF projected moderate GDP growth continuing the recovery around 4.3 to 4.5%. The economic recovery is stabilizing but faces challenges due to a complex domestic environment and global uncertainty. Underlying Reasons: The divergent predictions stem from various factors. The unexpected youth movement, known as the "Gen Z uprising,...
Post a Comment
Read more

A concise examination of the Nepalese budget.

Nepal’s current budget (FY 2083/84 / 2026–27) is a sizable and reform-focused budget, with a total expenditure of approximately Rs. 2.124 trillion. Of the overall budget, recurrent expenditure constitutes approximately 59.8%, capital expenditure accounts for 20.3%, and debt servicing/financial management makes up 19.9%. It highlights economic reform, growth of the private sector, infrastructure development, digital transformation, and enhancement of governance. Significant recurring costs, debt responsibilities, and a substantial proportion of non-development expenditures indicate that a major share of resources is allocated to government operations and fulfilling obligations instead of establishing new productive assets. The broader scope and key characteristics of Nepal’s Current Budget can be described as a substantial budget where the government has established ambitious objectives like enhanced economic growth and investment-driven expansion on a modest basis. Nonetheless, the po...
Post a Comment
Read more

War Economy and Agriculture

Urea Fact Sheet Global urea production reached more than 200 million metric tons in 2025. The market is rapidly expanding due to agricultural demand, with production capacity projected to reach around 300 million metric tons by 2030. Urea demand is heavily driven by agriculture, with Asia-Pacific accounting for roughly 61% of market share, North America at 10%, Europe at about 7%, and the rest in other regions. The market is projected to grow at a Compound Annual Growth Rate (CAGR) of 3.05%-3.9% through 2029-2034, driven by food demand for a growing global population. Key production centers include China, India, and the Middle East (Qatar, Oman, Saudi Arabia), with significant expansions planned to meet growing demand. More than 80% of urea is used in agriculture, and the rest in the industrial sector. Global Production Giants Saudi Basic Industries Corporation (SABIC), a Saudi Arabian company, is a global chemical and fertilizer powerhouse. Qatar Fertiliser Company (QAFC) is o...
Post a Comment
Read more