Money and Credit 

• Money is known as a medium of exchange, it is vital in today's world.
• When both parties agree to sell and buy each others commodities it is known as double coincidence of want. 
• Credit is the activity of borrowing and lending money between two parties
• Reserve bank of India is the national bank that oversees the formal sector.
• Deposits in the bank account which are made on demand are known as demand deposits
• The reserve bank of India issues currency, no other company is allowed to issue currency

Modern Currency is accepted because the government has issued it 

Advantages of demand deposit

• People with surplus money deposit their money in accounts of the bank.
• The bank pays them an amount of interest rate, so the money will gradually increase
•  People have provision to widdraw thier money whenever they want to

What is cheque?

A cheque is a piece of paper instructing the bank to pay the money from the persons account to the person the check has been issued to

Advantages:-

• Cheques are a lot easier to carry than money
• Cheques reduce a lot of risks
• It is known as the advance form of money