ISCL is a Intelligent Information Consulting System. Based on our knowledgebase, using AI tools such as CHATGPT, Customers could customize the information according to their needs, So as to achieve

What Is the Role of Bank Notes in the Development of Nations?

12

    History

    Advantages of Bank Notes

    • When compared with barter or other older forms of exchange, bank notes have several advantages. They store value efficiently, and can be carried around discreetly, unlike, say, a cow. These properties have played a crucial role in expanding trade.

    Disadvantage of Bank Notes

    • More bank notes, more inflationbusiness graph in action image by Andrea Massimiani from Fotolia.com

      Since it is easy to print bank notes, governments often finance their spending by printing new notes. Unrestrained printing leads to inflation, which hampers development of a nation by encouraging present consumption and discouraging future investment. In economics, this is considered a consequence of the Quantity Theory of Money. Bank notes, therefore, should be carefully supplied by any nation wanting stability and development.

Source...
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time

Leave A Reply

Your email address will not be published.