Value & Forms of Money

Value of Money

• It means Exchange Value.

• It implies how much of goods and services can be obtained in exchange of a unit of money.

• Value of money is inverse of price.

• When price level increases, the value of money decrease and vice versa.

Forms of Money

• The total money supply of a country can broadly be classified into two groups—Cash Money and Credit Money.

• It also includes all other financial assets.

• The degree of moniness varies widely from asset to asset.

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