BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Medium of exchange.
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Store of value.
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Standard of account.
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Equation of value.
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Detailed explanation-1: -A “medium of exchange” is considered one of the functions of money. The exchange acts as an intermediary instrument as the use can be to acquire any good or service and avoids the limitations of barter; where what one wants has to be matched with what the other has to offer.
Detailed explanation-2: -Money is a medium of exchange as it is used to make purchases and buy the goods and services one needs. Money also serves as a unit of account as it is used to measure the relative value of goods and services available in society.
Detailed explanation-3: -Money As a Medium of Exchange When consumers use money to purchase an item or service, they are effectively making a bid in response to an asking price.
Detailed explanation-4: -Currency is a medium for exchange of goods and services.
Detailed explanation-5: -Money is a liquid asset used to facilitate transactions of value. It is used as a medium of exchange between individuals and entities. It’s also a store of value and a unit of account that can measure the value of other goods.