Money

What is Money?

Money is an exciting concept that we use to buy things like food, water, clothes, cell phones, cars, books, pencils, pens, laptops, etc.  This is a concept that we use in our everyday lives.

Money became a medium of exchange for goods and services.

We use money in the form of papers or coins, officially issued by the government of that country, which is called the currency of that country. There are different types of currencies used all around the world. Every country has its currency.

Most commonly used currencies in the world

The most popular currencies in the world are as follows:

• The US dollar (USD) is used in the United States of America. It is represented by the symbol $.

• The Great British Pound (GBP) is used in the United Kingdom. It is represented by the symbol £.

• The Indian rupee (INR) is used in India. It is represented by the symbol ₹.

• The Japanese Yen (JPY) is used in Japan. It is represented by the symbol ¥.

• The Euro (EUR) is used in 20 European Union states like France, Germany, Italy, etc. It is represented by the symbol €.

Example: If Shakira buys a packet of pencils for $12, a packet of erasers for $7, two sharpeners for $3 each, a packet of pens for $18, and three notebooks for $35 from a stationary shop, how much money does she get from the shopkeeper when she gives him a $100 note?

a) $78
b) $72
c) $32
d) $22

Answer: d) $22

Explanation: Cost of a packet of pencils = $12
Cost of a packet of erasers = $7
Cost of two sharpeners = 2 x 3 = $6
Cost of a packet of pens = $18
Cost of three notebooks = $35
Tost cost of all the items = 12 + 7 + 6 + 18 + 35 = $78

She gave a $100 note to the shopkeeper.

Money she get back = 100 −78 = $22

Unit Conversion of Money

• One US dollar (USD) is equivalent to one hundred cents.

$1 = 100 cents

• One Great British Pound (GBP) is equivalent to one hundred pennies.

£1 = 100 pennies 

Example: What is the total amount of money?

a) 1400 cents
b) 1400 pennies
c) 1900 cents
d) 1900 pennies

Answer: d) 1900 pennies

Explanation: Total amount of money = 10 + 5 + 2 + 2 = £19 = 19 x 100 =1900 pennies