Before that I want to ask you a question. What is most important thing in your life to survive a better life?

Answer : Money, Yes dear everybody wants money to survive in a better enviourment a better life.

I will explain everything in my own way and in my own wordings. If you know Economics then might be you have a differnt opinion and lots of material with you. However I am not here to give you any Gyan. Here I am to let you know the some facts about Economics.

We have n number of books and notes to explain everything but remember my dear friends the all definations depends on some assumptions.

Its not compulsory that every assumption meets with your situation so I thought let me explain the thing in a simple manner.

I will not use any big words or big definations. I will not use any books or notes. I will use only my experience of life and try to simplify the things.

To get success in this I need your support so dear friends please read this blog and give me answer as per your thoughts. Once again I want to clear one thing here that nothing is wrong because all is depends on situations and situation can be changed every seconds.

Now todays question.

Everybody know about money but I want you to explain the money in your own words. Please give me comments on Money. What you understand about Money?

Money= "Money is a material which you can see, feel and touch. It can be used as a medium of exchange and can be stored for future needs."

>Means every item which can be used for exchange that you can called money.( Currency Notes, Coins, Gold, Silver, other metal or material )

> You can store money for future needs, means you can deposite money and use that in future as well. (Fixed Deposite certificate, Demand Draft, Promisary Notes, Hundi, Cheques etc)

> Full acceptability means nobody refuse to accept that and ready to do business with that. (Means if you have money and you want to buy anything and as a payment you want to give that then nobody will refuse to accept that.)

Note: 1) Earliar there were barter system and in that goods were used as money. For example you have wheat and you want to buy rice then what the people were doing they exchange Rice with the wheat. In that case wheat and rice both can be called as money.

2) All the above element is the key factors of money. Even a single element is absent then that material can not called as money.

Todays question What is pocket (Use Indian Funda)?

Pocket = Economics

Yes dear friends pocket is equal to economics.

Let me explain the things.

Pocket? = From where you get money+ where you have to spent money?+ to whom you have to give money?+ how much money left in your pocket?+ when and where you will use that left money?

In books its clearly written that money is the combination on demand and supply.

Demands means what you want and to fulfill your want you have the capability and you are ready to use your capability to complete your wants.

Supply means the availability of the elements which can satisfy your wants means deamands.

Its a cycle

if you invest than you will produce if you produce then there will be a supply if there will be a supply then there will be a demand and if demand is there then you will again invest and produce goods and services.

Golden rule no. 1-( Apni Jaib ko phchano or Economics ko Jano)

Today I am going to tell you the Economics funda in common language.

Pocket= Economics

Pocket = Money Comes, Money Goes and Money remain

Money Comes (Demand)= Recepit

Money Goes ( Supply) = Payments

Money Remain (Investments)= Savings

Receipt= Income, Loan, Gain, Profit and Revenue

Payment = Expences, Repayment of Loan, Giving loan,Loss and other

Saving = Income-Expences

Now the question is, do u understand this equations. I guess only 80% then what is the best way to understand the economics.

Here I am going to clear everything. So just read the story below.

In beginig of the world money was not there bcoz Human being was not able to to do trade like today at that time.

People were surviving by doing hunting and killing other animals. Later on people developed some tools and started culitivating crops.

Now as we are aware that the agriculture was totally depends on the weather and nobody can predict weather 100% till now. So sometime the crops was very huge and some time very less. People had developed some technique and stored some part of grains. That stored grians were used in difficult times.

The farmers used their crops to fullfill their other basic needs.

They exchanged their crops with metals,cloths, medicine and other goods and services.

For eaxample A person needs a Horse and he had 1000 kgs wheat so what he had done he went in to the village and ask B who had horses. But the problem was B wanted cow not wheat and thats why A went to C who has a cow but again there was a problem C wanted 3 goats. Like this problem everybody had some different problems at that time. At that time due to these type of problems people had developed some method of trading.

The above way of trading called Barter system in which if u want to buy something then u have to pay in goods or services not in terms of money.

The method the people developed was Hundi, Hundi was a paper just like todays stamp paper where both the parties ( Saler/ Buyer) signed on some terms and condition to do the trade. Other method was Metal coin was used as money. At that time 1 rupee was equal to 16 aanna now its equal to 100 paisa. At that time coin was not in uniform manner like todays coin. Gold, silver and Aluminium was used to make the coins. st time in History Tugluk had used copper in making coins which was a failed experiment at that time but today its commenly used for the same.

25 paisa= 4 aanna

China is the first country on the globe where they used paper as a currency note.

In begining there were only sole propritership firm. In sole propritership only a person is responsible for all the loss and profit which occure in business. Its a simplest form of business but it has its own merit and demerit as well.

Question: What u can do to get money?

Note : I have already cleared that what is money.

Country = Currency

India = Rupee

Japan = Yen

USA = USA Dollor

UK = Pound sterlling

Nepal = Napal Rupee

Bangladesh = Tka

Srilanka = Srilankan Rupee

Pakistan = Pakitani Rupee

Friend I will continue tomorrow. So plz ask question as many as u can. Iwill reply. I am thinking that its not intresteing another u will reply to me. Plz response if u like or dislike this series. If u dislike then I will stop this then and there.

Thanks & Regards

Alok Sharma