BANKING AFFAIRS

Detailed explanation-1: -Money as a standard of deferred payment means that the standard of pavment is contracted to be made at some future date. This is possible because value of money remains more or less constant and has the merit of general acceptability. This function of money has facilitated borrowing and lending activities.

Detailed explanation-2: -Most forms of money can act as standards of deferred payment including commodity money, representative money and most commonly fiat money. Representative and fiat money often exist in digital form as well as physical tokens such as coins and notes.

Detailed explanation-3: -A deferred payment option is a right to defer payments on an investment till a later date. Deferred payment options are common in retirement plans whereby individuals defer paying taxes till retirement when they are in a lower tax bracket-an important financial benefit.

Detailed explanation-4: -First, money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Instead of exchanging accounting services for shoes, the accountant now exchanges accounting services for money. This money is then used to buy shoes.