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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Unit of account
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Standard of deferred payments
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Detailed explanation-1: -Money serves as a medium of exchange, as a store of value, and as a unit of account. Medium of exchange. Money’s most important function is as a medium of exchange to facilitate transactions.
Detailed explanation-2: -Money facilitates transactions of goods and services as a medium of exchange. Producers sell their goods to wholesalers in exchange of money. Wholesalers, in turn, sell their goods to the retailers and the retailers sell these goods to the consumers in exchange for money.
Detailed explanation-3: -Currency is a medium for exchange of goods and services.
Detailed explanation-4: -Commerce is an exchange between two parties of goods or services for money.
Detailed explanation-5: -Conventional Approach: It takes into consideration only two functions of money, namely, medium of exchange and measure of value.