Money

In this chapter, we are going to learn about money and its significance. It is a fundamental aspect of our daily lives. It serves as a medium for the exchange of goods and services. It allows us to engage in transactions, meet our needs and plan for the future.

What is Money?

Money is a medium of exchange. It allows people and organizations to purchase goods and services that are essential for their livelihood and well-being. It is a transfer of funds. The money and goods are exchanged in the following way:

Currency is a term used to describe the various forms of money used globally. Each country has its own currency.

Most popular currencies in the world

Here are some of the most commonly used currencies around the world:

→ The Great British Pound (GBP) is the currency of the United Kingdom and its symbol is £.

→ The US dollar (USD) is the currency of the United States and its symbol is $.

→ The Indian rupee (INR) is the currency of India and its symbol is ?.

→ The Japanese yen (JPY) is the currency of Japan and its symbol is ¥.

→ The Euro (EUR) is the currency of 20 European Union countries like France, Germany and Italy and its symbol is €.

→ The Australian Dollar (AU$) is the currency of Australia and its symbol is $, A$ or AU$.

Unit Conversion of Money

The unit conversion of money is described below:

→ A single US dollar (USD) is equal to one hundred cents which are denoted as:

$1 = 100 cents

→ A single Great British Pound (GBP) is equal to one hundred pennies which is denoted as:

£1 = 100 pennies

Example 1: The shopkeeper received $214 for a luxury pair of earrings, $432 for a luxury necklace and $251 for a silver coin. What amount has he received in cents?

a) $78900
b) $87900
c) $89700
d) $98700

Answer: c)$89700

Explanation: Shopkeeper received the amount = $(214 + $432 + 251)
                                                                      = $897

Shopkeeper received the amount in cents = $897 × 100
                                                             = 89700 cents

Example 2: Newton purchases a bracelet for £329. What is the amount in pennies he gets back if he pays £400?

a) 5100 pennies
b) 7100 pennies
c) 9100 pennies
d) 10100 pennies

Answer: b)7100 pennies

Explanation: Amount paid by Newton = £400
Cost of bracelet = £329

Amount he gets back = £400 − £329 
                                = £71

Amount in pennies he gets back = £71 × 100 
                                               = 7100 pennies