LAND UTILIZATION Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
FUNCTIONS OF MONEY
Various functions of Money can be classified into three broad groups:
a) Primary functions
b) Secondary functions
c) Contingent functions
d) other functions
Primary functions
a)Medium of exchange : Money must be commonly accepted by the people in exchange of goods and services to be successful medium of exchange.Money benefits the society in number of ways as a medium of exchange.
-It offers sales and purchases through money.
-It promotes transactional efficiency.
-It allows freedom of choice .
b) Measure of value : Money serves as common measure of value in terms of which value of all goods and services is measured and expressed. It has made transactions easy and simplifies the problem of measuring and comparing prices of goods and services.
c) Unit of account : As a unit of account, it helps in developing an efficient accounting system . It provides basis for keeping account ,estimating national income,cost of a project etc.
Secondary functions
a)Standard of deferred payments : Money can be stated in the future payments also. Money not only helps in current transactions but also facilitated credit transaction.
b)Store of value : Money provides liquid store of value because it is so easy to withdraw and so easy to store. It provides security to individuals to meet emergencies .
c)Transfer of value : It also functions as a means of transferring value. Through money,value can be easily transferred from one place to another because money is acceptable everywhere.
Contingent functions
a) Distribution of national income : Money facilitates division of national income between people through the system of wages ,rent, profit and interest .
b) Maximization of satisfaction :Money helps both producer's and consumers to maximise their benefits. A producer maximise his profit by equation marginal productivity of factor unit to its price .Likewise a consumer maximus his satisfaction by equating the prices of each commodity with marginal utility.
c) Basis of credit system : Money constitutes the basis of credit system . People deposit their money in the banks and on basis of these deposits,bank create their credit.
Other functions
a) Liquidity to wealth : Money imparts liquidity to various forms of wealth. All forms of wealth can be converted into liquid anytime.
b) Price mechanism : Money is the medium through which price mechanism operates in order to establish a balance between demand and supply in the market .
c) Interest rate : Money has great influence on economic system by Changing interest rates. Interest rate rises with a decrease in money supply and falls with an increase in money supply.
d) Utilisation of resources : Proper monetary system can brings about an efficient and full utilisation of natural resources of the country.
e) Government expenditure : The monetary system has also influenced the expenditure of modern government.
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