Patterns of problems
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Money And Credit

- Hit the perfect ace in exams by getting acquainted with the different ways or patterns of the questions asked for a particular concept!
Pattern: Money as a medium of exchange
Description: Money serves as a medium of exchange. This is the main and most important function of money. Money carried the capacity to purchase goods and services which people want. Money is normally accepted as a medium through which all the sales and purchases takes place. As the money is accepted as a common medium of exchange, it has eliminated the difficulties of barter system.
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Pattern: Currency
Description: Currency is a generally accepted form of money, including coin and paper notes. Unlike the things that were used as money earlier, modern currency is not made of precious metal such as gold, silver and copper. Currency is issued by the government an circulated within an economy. The modern currency has no use of it, except as a medium of exchange. In India, Reserve Bank of India issues currency notes on behalf of the Government of India. The rupee is widely accepted as a medium of exchange.
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Pattern: Self Help Groups
Description: Self-help groups are small groups of people who pool their savings and lend money to those members who are in urgent need of money. Few features of self-help groups are:
  • It consists of 15-20 members
  • They can also avail loans from banks if their savings are regular, and the rate of interest is also low
  • Decisions regarding the savings and loan activities are taken by group members
  • It creates self-employment opportunities for the members
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