💰 Money

Money is anything that is generally accepted as a medium of exchange.

✅ Functions of Money:

1. Medium of Exchange – Used to buy and sell goods and services.

2. Store of Value – Keeps its value over time so people can save.

3. Unit of Account – Helps measure and compare the value of things.

4. Standard of Deferred Payment – Used to settle debts in the future.

🏦 Banking

Banks are financial institutions that accept deposits and give loans.

✅ Types of Banks:

1. Commercial Banks – For the public. They provide:

   • Savings accounts

   • Loans

   • Debit/credit services

   • Online banking

2. Central Bank – Controls the money supply and interest rates. Also:

   • Issues currency

   • Lender of last resort

   • Manages inflation

   • Supervises other banks

🧠 Simple Example:

You earn ₹1000. You save it in a bank (store of value). Later, you use it to buy a phone (medium of exchange). The price was ₹1000 (unit of account), and you paid in 2 parts (standard of deferred payment).