ECONOMICS
MONEY
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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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measure of value
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standard of deferred payment
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Detailed explanation-1: -The measure of value is the function of money that enables the values of different goods and services to be compared, also referred to as a unit of value.
Detailed explanation-2: -Money as a measure of value, helps in determining the value of goods and services in the economy. Money is taken as the common denominator while measuring the value of goods and services in the economy. Therefore, with the help of this function everything can be measure in a common denominator or unit.
Detailed explanation-3: -The most common method to value currency is through exchange rates. The two main exchange rate systems are fixed rate and floating rate systems.
Detailed explanation-4: -To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange. Modern economies use fiat money-money that is neither a commodity nor represented or “backed” by a commodity.