A Definition of One of the Most Prolific & Most Misunderstood Commodities on the Planet
From obtaining an education to set up a business, you need money to survive in this world. Not to mention, money plays a vital role in the corporate world. It is no wonder that businesses solely depend on money; most of the interactions or dealings in businesses involve a large amount of money.
That said, investment is one of the most common examples of business that involves money. When it comes to investment, numerous people around the world put a significant amount of money in a specific market, so that when the market stabilizes and expands, the worth of money people invested increases.
Not to forget, money helps businesses operate, which in return, boosts the economy to function well. It propels businesses to the future more efficiently, particularly when leveraged effectively and efficiently. These businesses offer products and services that meet the demands of the consumers.
If you eliminate money from the society, the society will not only lose its order, but it will also cease businesses, which will create an abrupt yet drastic effect on the world.
“Money makes the world go around.” You probably have heard this phrase, which emphasizes enough on the importance of money in the economies. Well, all the economies in the world rely entirely on the exchange of money for the products and services offered. While we are discussing money, you will find it interesting to know its specific characteristic:
Medium of Exchange
Thousands of years ago, when there was no concept of money, people obtain the products or services they needed through a barter system. In place of money, they used to exchange some goods for getting the one they needed.
Nevertheless, the barter system did not provide the people with divisibility and transferability. Even the lack of transferability was inefficient and full of hassle. On the other hand, money allows people to attain what they want or need efficiently.
Categories of Money
The first category of money, Active money, includes all the physical values of currency and coins, which demand deposits. Note that, this category is one of the narrowest of three; however, it is used to make payments and buy things.
M2 is the second category, which has broader criteria and makes money readily transferred into cash. It includes savings accounts deposits, time-related deposits, non-institutional money market funds, currency, and coins.
As the vast category of money, M3 includes savings accounts deposits, time-related deposits, non-institutional money market funds, institutional money market funds, short-term repurchase agreements, large time deposits, all combined with other liquid assets.
The Transformation over the Decades
Finance industry evolved and introduced different transaction methods over the decades. From barter system to digital payment methods, cash industry has gone through a significant transformation. However, as mentioned before, the position of ATMs is still going strong.
Therefore, if you are looking for the ways to expand your business, drive more foot traffic, earn higher profits, and build a strong reputation, none is better than installing an automated teller machine, especially if you have a retail store.