ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Commondty money is the hardest term to remember this unit.
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Money is accepted by people when they buy goods and services
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The purchasing power of money can be transported from one time period to another
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Money is like a yardstick, people use it to compare the worth of things they buy and sell.
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Detailed explanation-1: -A medium of exchange is a portable instrument that is used as an intermediary to facilitate the sale and purchase of goods between parties. In modern economies, the medium of exchange is currency. A currency must remain reasonably stable in value in order for it to work as an intermediary.
Detailed explanation-2: -Currency is a medium for exchange of goods and services.
Detailed explanation-3: -A medium of exchange is a transitional instrument used to settle the trade of products and services among market participants. It is a system used to enable the exchange of items. Currency is the most common medium of exchange accepted as a standard by all parties for settling economic transactions.
Detailed explanation-4: -1. It is accepted as a medium of exchange because the currency is authorized by the Government of India. 2. In India, the Reserve bank of India issues currency notes on behalf of the Central Government of India.
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.