Role of money in the society and economy?
One role of money in our society and economy is that it gives consumers a way to purchase goods and services. Without money, consumers would have to rely on the barter system.
Finance is critical to the economy in that money is needed for business to function in society. For example, a person deposits money into a financial institution, which then lends money out to a small business. That small business sells a product that is needed by the person, so they buy it and the business pays back the loan given from the financial institution.
Inflation; General and sustained increase in price level in an economy or a loss in the value of money too much money chasing too few goods. Causes: Economy having demand that is past capacity to produce; rapid and sudden increase in money supply Role of inflation: to create confident that the economy will not be going to deflation.
The role of society towards child education depends on the society. In usa society, the government plays a vital role in providing basic and compulsory education for all children free for at least 13 years old. Society is supposed to invest in the education of our children to stimulate a successful economy and society in the future, instead of taxing unborn generations and reducing their potential for freedom of choice when they become adult citizens.
Business keeps the money flowing. When somebody spends something at a business, the people working there have extra money to spend on something else, which gives the people at another business extra money to spend...etc. When theft occurs, people start saving money, or don't have extra money to spend, the economy slows down.
money doesn`t play an imp role in socialist economy. it`s passive the only function of money is medium of exchange or static one. unlike capitalist all economic activities determined by the govt. what is produce, hoe to produce all determine by the govt even prices of the product is determine by the govt. no one can change the price