Hi All, Nice to see you here again.
Just think you have $1000 in hand. This $1000 is money left with you after meeting your expenditure. I took $ 1000 as an example of easy calculation.
You went to market asked about the cost of the apple. You found the cost is $10 per kg.
With the money in your hand, you can buy a 100Kg apple.
You kept the money in your home safely.
The exact same day of next year you went to the shop again asked the cost. You found the cost increased to $15 /per kg. Now you can't buy 100kg with $1000. What happened, the value of your money reduced.
Suppose you deposited this money to the bank, you will get this money with some interest after one year. Then you can buy apples for the interest amount also. It is better to keep your money in a bank rather than keeping in your hand. it is safe too.
Also, the bank will give this money to the society who need it. In turn, the bank will get interest. Same time this money will be used for the development of the nation. Also, it will create a lot of job opportunities.
Note: Some countries especially developed, those will not give interest on your deposit. Also, the apple cost remains the same there.
Comments
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Well, this is actually a really debatable topic. :)))
I've learnt about banking recently. And my conclusion is...money is not wealth. ^^