CBSE Class 12-commerce Macroeconomics Money and Banking

Get introduced to Money and Banking from the CBSE Class 12 Commerce Economics chapter Money and Banking by referring to the revision notes, sample papers, past years’ papers etc. at TopperLearning.

Money is the commonly accepted medium of exchange. In an economy which consists of only one individual, there cannot be any exchange of commodities, and hence, there is no role for money. Even if there is more than one individual, such as a family living on an isolated island, but they do not take part in market transactions, money has no function for them. However, as soon as there is more than one economic agent who engages in transactions through the market, money becomes an important instrument for facilitating exchange.