Index Numbers

Definition:
" When you can measure what you are speaking about and express it in number, you know something about it; when you can't measure it, when you cannot express it in numbers, your knowledge of meager and unsatisfactory kind."

Introduction:
Money is an important element of our daily life and it is one of the most confusing and puzzling thing in nature. Everybody of us remembers going to the school canteen and purchasing coca cola just for Rs 4 only 12 to 15 years ago. Or ask your elders how much cheap were chicken, mutton, oil etc. in their childhood. As we people have grown up, prices too have grown up but the later phenomena is a tricky and complicated one.

Value of money:
Money of course has value in it. But this value is exposed to a considerable degree of fluctuations. This value is called the Nominal Value of Money. The other concept is of Real Value of Money.