Concept of Money



To understand the concept of money, we have to go many years ago. Here, in this world every things are being exchanged between and among one to another's ,and that is how our life and livelihood is going on. so the more you have power of exchanged the more you will be able to full fill your need and want. now question is what is being exchanged among us. we can say several things and it will be very long list as more as our need and want. but basically  only two things are exchanged which are
1.Goods / Products
2. Services
There are many  years ago this products and service are exchanged by product and services, and it is called BARTER System. for example if a farmer grew Rice and Wheat could exchanged Fish and so on. People work under farmer could get Rice and Wheat for his service. But there are many limitation and Cons of  the Barter System.
1. Unstable and Big Gap of Demand and supply.
2. Difficult to determine Value of product and service.

If a fisherman need rice had to find farmer who has rice and he need fish, so here a fisher man demand rice had to find a farmer has demand of fish. like that, value of product ( fish and rice ) would be determine.
That is why and That is how, the concept of money come into existence. now the medium of exchanged is money for product and services. so now money play the role of exchanged among us for value of product/Goods and services by Demand and supply. Exchange, mean the power of buying goods and services, and that is how our Trade and Economy running. Like that, the concept of money is a great invention of our civilization. money's value determine by demand and supply of goods and services. but money specially fiat money does not have any value of itself. it is just a piece of a paper. 
Now we understood that Money play role of exchange for making payment or buying goods and services.
Money determine unit value of  Goods and Services by Demand and Supply.

There are many more things about money. it is a vast subject. there are many cons and pros also of money.
As we generally understood the role of money but one another hidden things are also there which never thought about money. here we will not discuss on that. but this journey will be going on and we will discuss on next more about money.
Here, we must remember and my humble request to my younger brother and sister that...
Let money run behind Goods and Services.  and  Don't let run Goods and Services behind money.
Today we must learn and it should be taught that we must be able to provide Goods and Services. we must be Goods and Services Oriented person. Money will come behind us.


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Unknown said…
Wow! Awesome 👏
April 9, 2020 at 4:53 PM
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