There are a number of instruments of monetary policy, which are important for a business to understand, but, here it is also important to know what Monetary Policy is? Credit performs important functions. Being the major part of the total supply of money in a modern economy, the value of money is influenced by the volume of credit.
Importance of Money for Organizations: The need for money is quite clear to everyone as it has the capacity to fulfill the different needs of people. So the importance of money in organizations is quite important as it is used as a motivational tool for triggering the Performance of the Employees.
Importance Of Money: There are a number of functions of money that can be seen easily in the business world. But before discussing the functions of money, let’s define the money. Money has been defined by different authors in different ways, which is discussed as under:
Whenever a large number of entities or corporations join together and make up a system is known as the banking system. They carry out their specific job of raising funds and lending resources in the economic and financial markets.
Importance of Bank: Banking plays an important role in the financial life of a business, and the importance of banks can be seen from the fact that they are considered to be the life-blood of the modern economy. Although no wealth is created by banks, their essential activities facilitate the process of production, exchange and distribution of wealth.