Money and its knowledge

# Money


## What is Money?


=> To get any product or services from anybody. The medium is needed which is known as the money.


Example :

    Paper Notes

    Assets

    Gold, Silver, etc


## How does Money works?


=> Suppose you need something(x) from somebody. The person ask execpt something valuable in return let's us suppose(y). The medium (y) is money. In order to get something the medium (y) works.


## How do Bank produce Money ?


=>  Example If, i deposit Rs 1000 into bank where bank takes 10% of it.


    Banks takes = 10% of 1000

                = 100


    Remaining money ( Banks sets this amt for bank loan ) = 1000 - 100

                                                          = 900

    

    Money Multiplier = 900 * 1 / 0.10

                     = 9000


    So, From Rs 1000 deposit banks makes Rs 9000 by money multiplier.


## How do Bank Calculate how much money to print ?


=> They look there reserve and calculate the buget also they check the inflation, rate and many factors gdp and so on.


## Why do we need Money?


=> To gain any product / service we need the money.


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