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Meaning and Functions of Money

ICSE · Class 10 · Economics

Complete topic list for Meaning and Functions of Money in ICSE Class 10 Economics. Key concepts, sub-topics, and what to focus on for board exams.

44 questions25 flashcards5 concepts

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A comparison showing the difficulties of a barter system (double coincidence of wants, storage issues) versus the ease of transactions with money as a medium of exchange, unit of account, and store of
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4 Topics · ICSE Class 10 Economics

Topics in Meaning and Functions of Money

1

Barter System and Its Difficulties

  • Barter system is the direct exchange of goods for goods without using money (C-C economy where C stands for commodity)
  • Example: A piece of cloth exchanged for wheat, or a teacher paid in rice for teaching services
  • Five major difficulties: (1) Lack of double coincidence of wants (2) Lack of common measure of value (3) Lack of divisibility (4) Problem of storing wealth (5) Lack of standard of deferred payments
2

Evolution of Money

  • Five stages of money evolution: (1) Animal money (2) Commodity money (3) Metallic money (4) Paper money (5) Bank money
  • Animal money: Cattle used in ancient India (Go-Dhan), cows and sheep in Roman State for taxes and fines
  • Commodity money: Various goods like shells (seashore communities), animal skins (cold regions like Alaska), ivory and tiger-jaws (tropical Africa)
3

Definitions and Forms of Money

  • Four types of definitions: (1) Legal definition (2) Functional definition (3) General acceptability definition (4) Scope-based definition
  • Legal definition: Money is what law declares as money (legal tender)
  • Functional definition: Money performs four functions - medium of exchange, measure of value, store of value, standard of deferred payments
4

Features of Money

  • Seven essential features: (1) General acceptability (2) Divisibility (3) Durability (4) Cognizability (5) Portability (6) Homogeneity (7) Stability
  • General acceptability: Must be freely accepted by people in exchange
  • Divisibility: Can be broken into smaller units for small transactions

Key Concepts

A system where goods and servicesThe main problem of barter systemMoney evolved through five stagesMoney that is legally recognized byGovernment

Frequently Asked Questions

What are the important topics in Meaning and Functions of Money for ICSE Class 10 Economics?
Meaning and Functions of Money covers several key topics that are frequently asked in ICSE Class 10 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Meaning and Functions of Money — ICSE Class 10 Economics?
Understand the core concepts first, then work through the 44 practice questions available for this chapter. Revise formulas and 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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