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Money and Banking — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsMoney and Banking2 Marks
Question
Money is dynamic in nature. How?
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Answer

Money is a dynamic factor because:

  1. It has facilitated exchange beyond limits.
  2. It has facilitated accumulation of wealth for the purpose of investment.
  3. It has facilitated flow of capital from one place to other and from developed countries to less developed countries of the world.

Briefly, money is a dynamic factor because it helps economic stability and promotes the process of growth and development.

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