Chapter 3 of 11
Revision Notes
Money and Inflation — Revision Notes
Gujarat Board · Class 12 · Economics
Money and Inflation revision notes for Gujarat Board Class 12 Economics: 4 topics in quick points. Part of the Gujarat Board Class 12 Economics syllabus.
45 questions24 flashcards5 concepts
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Key Topics to Revise
1
Barter System and its Limitations
- Barter system is the direct exchange of goods and services without using money as a medium
- It worked well in simple agricultural economies with limited needs
- Three major limitations: Problem of double coincidence of wants, difficulty in storing value, and problem of measuring value
2
Origin and Evolution of Money
- Money evolved from commodities and animals used as medium of exchange
- In India, agriculture-based economy led to use of animals like cows, horses, buffalo
- Animals had limitations - they could get sick, die, or were difficult to transport
3
Meaning and Functions of Money
- Marshall's definition: 'Money is that medium which is used as a means of exchange without any doubt or investigation regardless of time or place'
- Robertson's definition: 'What is accepted universally in exchange of goods or services'
- Three primary functions: Medium of exchange, Store of value, Measure of value
4
Types of Money
- Six main types: Commodity money, Animal money, Metal money, Paper money, Plastic money, Banking money
- Commodity money: Goods with intrinsic value used as money
- Animal money: Livestock used as medium of exchange
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Full NotesKey Concepts
A system of exchange where goodsMoney serves three primary functionsMoney evolved from commodity money (cropsInflation is a sustained increaseInflation caused by increase in aggregate
Frequently Asked Questions
What are the important topics in Money and Inflation for Gujarat Board Class 12 Economics?
Key topics in Money and Inflation include Barter System and its Limitations, Origin and Evolution of Money, Meaning and Functions of Money, Types of Money. Study these first, then practise questions on each for the Gujarat Board Class 12 board exam.
How should I revise Money and Inflation for the Gujarat Board Class 12 board exam?
Learn the core ideas first, then work through the 45 practice questions on Money and Inflation. Revise definitions regularly and use flashcards for quick recall before the exam.
Sources & Official References
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
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