
In this chapter, we examine the evolution and functions of money,
the qualities of good money, the systems of note issue, kinds of
money, Gresham’s law, the value of money, changes in the supply of
money, relation between the supply of money and price level, and
the changing value of money including the quantity theory, Index
numbers, in ation and de ation. After going through this chapter,
you will understand the functions and the value of money.
Humans have always been in search of things that will make life
easier, pleasant and worth living. The primitives produced a few
things but wanted numerous other things to satisfy their desires. ...