Money

This chapter will explore the significance of money in our daily existence. Money allows us to buy essential items like groceries and pay for services like transportation. It also enables us to plan for the future by saving for important goals, such as education or retirement. By understanding how to handle money wisely, you can make these financial aspects of life more enjoyable and fulfilling.

What is Money?

Money is something people use to buy goods and services. It is a medium of exchange. Money can be found in different forms such as coins, banknotes and paper bills. We are using the money to buy what we want or need. The term currency describes the various kinds of money that are traded all over the world. There is a national currency in every country.

Money has become an instrument of exchange for goods and services. After buying goods or taking services, we can pay by means of a paper currency or digital payment.

Most commonly used currencies in the world

The most commonly used currencies in the world are as follows:

1. The Great British Pound (GBP) is the official unit of currency in the United Kingdom and is represented by the symbol £.

2. The US dollar (USD) is the official unit of currency in the United States of America and is represented by the symbol $.

3. The Indian rupee (INR) is the official unit of currency in India and is represented by the symbol $.

4. The Japanese Yen (JPY) is the official unit of currency in Japan and is represented by the symbol ¥.

5. The Australian Dollar (AU$) is the official unit of currency in Australia and is represented by the symbol $, A$ or AU$.

6. The Euro (EUR) is the official unit of currency in 20 European Union states like Spain, France, Germany, Finland, Italy, etc. It is represented by the symbol €.

Unit Conversion of Money

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

$1 = 100 cents

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

£1 = 100 pennies

Operations performed on Money

The operations performed on money include addition, subtraction, multiplication and division. The operations performed on money correspond to the simple operations.

Addition of Money

The addition of money is just like any other addition. Check out the following example.

Example: Ane went to the shopping mall and saw the sale at the mall. If she purchased the following items, what is the sum of the bill after shopping?

a) $34.05
b) $34.15
c) $34.25
d) $34.35

Answer: b) $34.15

Explanation: Sum of the bill after shopping = $(5.35 + 5.92 + 3.42 + 3.77 + 7.28 + 0.27 + 0.91 + 0.74 +0.19 + 6.30)
                                                                 = $34.15

Subtraction of Money

The subtraction of money is just like any other subtraction. Check out the following example.

Example: What is the amount of the bill if the bill is $273.19 less than the note shown in the figure?

a) $706.81
b) $716.81
c) $726.81
d) $736.81

Answer: c) $726.81

Explanation: Amount shown in the figure = $1000 

Bill is $273.19 less than the note shown in the figure.

Amount of the bill = $(1000 − 273.19)
                           = $726.81

Multiplication of Money

The multiplication of money is just like any other multiplication. Check out the following example.

Example: A car manufacturer company paid the electricity bill online for his factory. What would be the electricity bill in pennies if he paid £13532.43?

a) 135324.3 pennies
b) 1353243 pennies
c) 13532430 pennies
d) 135324300 pennies

Answer: b) 1353243 pennies

Explanation: Electricity bill in pennies = £13532.43 × 100 [£1 = 100 Pennies]
                                                         = 1353243 pennies

Division of Money

The division of money is just like any other division. Check out the following example.

Example: What is the cost of a shrug if the cost of 35 shrugs is $200.20?

a) $3.27
b) $3.72
c) $5.27
d) $5.72

Answer: d) $5.72

Explanation: Cost of 15 shrugs = $200.20

Cost of 1 shrug = $(200.20 ÷ 35) = $5.72