Institute of Banking and Personnel Selection (IBPS) is all set to conduct Common Written Examination for recruitment of Probationary Officers. IBPS PO Exam 2013 is scheduled to be held on 19 October 2013, 20 October 2013, 26 October 2013, and 27 October 2013. The common written examination includes 5 sections comprising General Awareness, English Language, Reasoning, Quantitative Aptitude, and Computer Knowledge.
The General Awareness (GA) Section of IBPS PO Exam that will comprise 40 questions from topics like money, banking, economics, etc., is quite a challenging but can be highly scoring if prepared well. To prepare comprehensively for GA section, banking aspirant would have to have a right preparation strategy and an all-inclusive study material. Here, Jagranjosh provides a one-stop solution for it by offering “IBPS PO Exam 2013: General Awareness Study Material (E Book)”, which is a perfect blend of all the basic questions and terms of banking and economics in chapter-wise format.
Chapter: Money and Banking in India
DEFINITION OF MONEY
Money is anything, which is generally acceptable as means of payment in the settlement of all transactions, including debt. It is the commonly used as medium of exchange. It has power to purchase things directly in all markets. It does not require to be converted into something else before it can be spent or used. General acceptability as the common means of payment is the distinctive characteristic of money.
FUNCTIONS OF MONEY
Medium of Exchange
- It is a characteristic that distinguishes money from other assets (near-money or non-money). All other functions of money are derived from this primary function.
- Without money, exchange will involve a direct barter of goods and services for goods and services. It always promotes transactional efficiency in exchange and allocation efficiency.
Unit of Account
- This function of money is also variously known as unit of value, standard of value, common denominator of value and common measure of value.
- In terms of money, the values of all goods and services are expressed which ensures possible meaningful accounting systems by adding up the values of goods and services, e.g. National income estimates of a country, money cost of a project, etc.
Standard of Deferred Payment
- Money serves as a standard or unit through which deferred or future payments can be made. This applies to payments of interest, rents, salaries, insurance premium etc.
- In a money-using system, the bulk of deferred payments are stipulated in money terms.
Store of Value
This function is derived from the use of money as a medium of exchange in a two-fold manner. First, it decomposes a single barter transaction into two separate transactions of purchase and sale. Second, in money-using system, incomes in the form of wages, salaries, rent, interest and profits are money payments received discontinuously.
The above concept is taken from IBPS PO Exam 2013: General Awareness Study Material (E Book).
Check the Sample e-Book, to verify the content that jagranjosh.com will deliver in the IBPS PO Exam 2013: General Awareness (Basic) E-Book.