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What is Functions of Money in Economics about?

Money serves as a medium of exchange, unit of account, and store of value, facilitating transactions in an economy. The demand for money is influenced by transaction values and interest rates, while the supply is managed by central banks and commercial banks through various mechanisms. The banking system can create money by lending, subject to reserve requirements set by the central bank to prevent over-lending.

Author

Tanvi Chawla

Language

EN