Understanding the concept of money and banking from "summary" of Oswaal NCERT One For All for UPSC & State PSC's Indian Economy Classes-9 to 12 (Old & New NCERT Edition) (For 2023 Exam) by Oswaal Editorial Board
Money and banking are two fundamental components of any economy. Money serves as a medium of exchange, unit of account, and store of value. It facilitates transactions by eliminating the need for barter. Understanding the concept of money is crucial for comprehending how economies function. It can be in the form of coins, paper currency, or digital currency. Banks play a vital role in the financial system by accepting deposits, providing loans, and facilitating payments. They act as intermediaries between savers and borrowers. Banks create money through the process of credit creation, where they lend out a portion of the deposits they receive. This leads to an ...
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