What Are The Merits And Demerits Of Money?

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What Are The Merits And Demerits Of Money?

4 Answers

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Answer 1

Demerits of money :
1.econonic instability :- money is resoonsible for instabilty of economy which is almost found in caoitalits economics. When there was no money saving was not divorced for the investment. Those who saved also invested. But in monetised economy, saving ai done by certain people.
2.danger of over issue:
When the money is over issued it can give the birth to the hyper inflation which is also dangrious for the stbility of economy of a country.
3. Chances of robbery:
When we carry money from one palace to an other there are chances of being robbed.
4. Morral depravity:
Money has weakened the morral depravity among the people.

Answer 2

Anonymous answered

Merits of money

Answer 3

Money is no more than an object. It is assigned value by various agreements that people make to give value to it. When you give away ,money for charity, for instance, certain points are allotted to known amounts of money. These points are the merits of the money. For example, in Canada, 6,875 dollars of prize money are equivalent to 600 points.

Answer 4

There is no doubt that in a capitalistic economy, a properly managed money system has greatly helped in the achievement of high stable level of production, employment and real income. But when money is not rightly controlled, it proves a source of confusion and disorder in the economy.

In a mismanaged money system, there are upswings and down swings in economic activity which result in the wastage of economics resources. The upswing trade cycles are caused from money expenditure in excess of current money income and down swing arise by failure of money expenditure to be equal to the current money income. The ups and downs of the business cycle caused by changes in money supply affect different persons differently.

Another evil use of money is that it has resulted in the creation of serious shifts in the distribution of wealth. The society has been split up into two distinct warring camps, the haves and have nots. The increase number and declining status of the moneyless class cause to revolt against the capitalistic class.

With the advent of money, man has begun to think in terms of money alone. Human values are steadily losing their importance which is very dangerous trend. The fact is that money is playing the role of measure and exchange, store of value and a unit of account has brought a revolution in the economic system.