The evolution of money refers to the transition from barter systems to modern currency systems.
Commodity money is a type of money that has intrinsic value, such as gold or silver.
Fiat money is currency that has no intrinsic value and is established as money by government regulation.
Currency exchange is the process of converting one currency into another, which is important for international trade and travel.
Factors that influence the demand and supply of money include interest rates, inflation, and economic conditions.
The basics of cryptocurrency include its decentralized nature, reliance on blockchain technology, and key features such as security and anonymity.
This means that people can save money and use it later. It helps to spread out purchases over time.
Money provides a common way to measure the value of goods and services. It’s like a ruler for prices.
The concept of money refers to something that represents value and is used to buy things or pay back debts.
The characteristics of money include its role as a store of value, unit of account, and medium of exchange.
A system where decisions are made collectively without a central authority.
It eliminated the need for direct exchanges of goods and services.
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Higher demand for imports typically causes a country's exchange rate to rise, making imports more expensive and exports more affordable.
A type of digital currency that uses technologies like blockchain and cryptography to keep online transactions secure.
Currency exchange
Fraudulent traders and exchanges are scams where individuals pose as legitimate traders or create fake platforms to steal money.
Converting one currency into another for various purposes.
Using a third currency to calculate the exchange rate between two other currencies.
Commodity money has intrinsic value based on the material from which it is made.
Depreciation refers to the method of spreading out the cost of an expensive asset over time.
To facilitate the exchange of goods and services.
A hardware wallet that stores private keys offline, making it more secure but less convenient for frequent trading.
Cryptocurrency frauds are scams that involve deceitful practices to steal money from investors in the cryptocurrency market.
Currency exchange enables businesses to buy and sell goods and services internationally, pricing products in different currencies.
A type of cryptocurrency that operates on its own blockchain.
Money is designed to be durable, capable of withstanding wear and tear over time.
To spread out the cost of assets over time, helping manage finances better.
Money is recognisable, possessing distinct features that make it easily identifiable and distinguishable from counterfeit currency.
Money is stable, maintaining its value over time.
Its smart contract functionality, allowing developers to create decentralized applications.
The central bank controls the supply of money through various tools, such as open market operations, reserve requirements, and the discount rate.
M1 includes currency (notes and coins) in circulation among the public and demand deposits held by commercial banks, representing the most liquid form of money.
The desire to hold money for transactions, precaution, and speculation.
The decrease in value of an asset over time.
M1.
A Ponzi scheme is a fraudulent investment scam that pays returns to earlier investors using the capital from newer investors.
The Reserve Bank of India (RBI).
The value of one currency in terms of another.
A software application that allows users to store and manage their cryptocurrencies.
Money is an intangible system of value, while currency is a tangible form of money.
A region consisting of 19 member states of the European Union that use the Euro
Cryptocurrency is not considered a fiat currency in India and is subject to regulatory warnings from the government and RBI.
Its portability and durability.
M3 includes M1 plus net time deposits of commercial banks, representing a broader measure than M2.
They are not controlled by any single entity like a bank or government.
A digital or virtual currency that uses cryptography for security.
It decreases because people prefer to save or invest.
A regular currency that is managed by a central bank.
Commodity money has intrinsic value, whereas fiat money does not.
A method of allocating the cost of an asset evenly over its useful life.
Fake endorsements are when scammers impersonate celebrities or companies to promote a cryptocurrency, creating false hype.
Commodity money has intrinsic value, meaning it is made of a valuable substance like gold or silver.
Fiat money does not have intrinsic value and is valuable because the government declares it as legal tender.
Ripple is both a digital payment protocol and a cryptocurrency (XRP) focused on enabling fast cross-border payments.
Altcoins are cryptocurrencies other than Bitcoin, offering different features and use cases in the market.
Through its offices and issue centers located across the country.
A cryptocurrency created in 2011 that offers faster transaction times and lower fees.
The banking system plays a crucial role in the supply of money through fractional reserve banking, creating money by making loans.
An asset is a valuable resource owned or controlled by an individual, corporation, or nation, aimed at yielding future advantages.
It affects their financial statements and taxes.
The practice of securing information through coding.
It issues and manages the Indian currency.
Cross currency triangulation is a method used to calculate the exchange rate between two currencies using a third currency.
They can be sent and received anywhere in the world with an internet connection.
The formula is A/B ÷ C/B = A/C, used to find the exchange rate between two currencies.
To buy digital coins or tokens with the expectation that their value will increase over time.
KYC, or Know Your Customer, is a verification process requiring identity and address proof to create an account on a cryptocurrency exchange.
They help countries conduct transactions with international partners more efficiently
Higher interest rates can discourage people from holding onto money, as it means they could earn more by investing it.
By using secret codes that only the sender and receiver can decipher.
The physical paper notes and coins used in everyday transactions.
The institution that manages a country's currency and monetary policy.
A distributed digital ledger that records transactions across many computers.
A unique string of characters used to link blocks in a blockchain.
An instance of buying or selling something.
Depreciation expense = (Cost of asset - Residual value)/(Useful life)
Romance scams involve scammers building relationships online to persuade victims to invest in cryptocurrencies.
A unit that contains a list of transactions linked together.
Currency pairs compare the value of one currency to another, facilitating the buying and selling of currencies.
The identities of the people involved in transactions are encoded and hidden.
The base currency is the first currency in a pair, which is being bought or sold against the quote currency.
Higher interest rates incentivize people to hold less money because they can earn more by saving or investing it.
If people expect prices to rise, they may hold more money to avoid losing purchasing power, leading to an increase in the demand for money.
Hot wallets are connected to the internet and less secure, while cold wallets are offline and more secure.
Tangible assets are physical items that have an actual presence, such as land, buildings, and machinery.
Perishable
Fixing rates helps to stabilize currency fluctuations, maintaining economic stability and preventing downturns.
US Dollar
It uses technologies like blockchain and cryptography for security.
The value of one currency in terms of another
Foreign exchange market
To maintain stability and prevent depreciation of domestic currencies
Currency exchange involves converting one currency into another for various purposes, such as travel, trade, or investment.
The first cryptocurrency, created in 2009 by an unknown person or group.
Economic, political, and psychological factors
Central banks use monetary policy to control the supply of money by adjusting interest rates and other monetary tools.
A digital record book that keeps track of transactions in an electronic form.
Intangible assets are non-physical resources that hold long-term value for a company, used to generate revenue.
To influence the supply of money using various tools.
'Paise' (singular 'Paisa').
It means there are no solid rules or regulations set by the government regarding its use.
A way to keep messages and data safe using secret codes.
Currency exchange allows travelers to convert their home currency into local currency, enabling them to pay for goods and services abroad.
A method that depreciates the asset at a faster rate than the straight-line method.
It played a crucial role in stabilizing the country’s economy and facilitating economic growth.
The British pound, which was tied to the gold standard.
That security features are included and high-quality banknotes are provided to the public.
Fiat money has no intrinsic value and is not backed by a physical commodity; its value is derived from the trust and confidence that people have in the issuing government.
When earnings increase, people generally want more money to manage their transactions.
M2 includes M1 plus savings deposits with Post Office savings banks.
A digital currency that operates without a central authority.
An online software wallet that is convenient for frequent trading but more vulnerable to hacks.
A roadmap that helps you track how much an asset decreases in value over time.
When the demand for money equals the supply.
Perishable refers to something that can decay or spoil over time, which does not apply to money.
Money is used as a way to buy and sell things between people. It’s like a tool for trading.
Money is fungible, meaning each unit is interchangeable with another. This interchangeability ensures that all units of money are equal in value.
The RBI issues and manages the Indian currency, regulates the banking system, and controls the monetary policy to maintain price stability and economic growth.
The exchange rate of a currency represents the value of one currency in terms of another.
Hacking refers to criminals stealing cryptocurrencies from digital wallets, which is increasingly common as cryptocurrencies gain popularity.
Cross currency triangulation is using a third currency to calculate the exchange rate between two other currencies.
As incomes rise, the demand for money typically increases since people have more transactions to make.
M4 includes M3 plus total deposits with Post Office savings organizations, excluding National Savings Certificates.
They are anonymous and recorded on a public ledger.
Precautionary Demand.
Wear and tear, mileage, age, and market demand.
Depreciation can show an asset losing value on paper, but some assets may actually increase in value over time.
30% tax on profit from cryptocurrencies.
It means that anyone can view the contents of the blockchain at any time.
A group of interconnected computers that manage cryptocurrency.
The estimated value of the asset at the end of its useful life.
There is a cap on the total number of coins that can ever exist.
Money is portable, as it allows individuals to carry and exchange it easily.
Physical assets that can be depreciated.
Non-physical assets that can be amortized.
Transaction demand is the need for money to facilitate daily transactions.
Speculative demand is when individuals hold money as a form of investment, speculating that its value will increase in the future.
Precautionary demand refers to holding money as a measure for unexpected expenses or emergencies.
When the government spends money, it injects more money into the economy, increasing the money supply.
