ECONOMICS (CBSE/UGC NET)

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ECONOMICS

MONEY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The fact that a $10 bill received today will still be worth $10 100 years from now is an example of which function of money?
A
Store of value
B
Unit of account
C
Medium of exhange
D
None of the above
Explanation: 

Detailed explanation-1: -Money is anything that serves as a medium of exchange. Other functions of money are to serve as a unit of account and as a store of value. Money may or may not have intrinsic value. Commodity money has intrinsic value because it has other uses besides being a medium of exchange.

Detailed explanation-2: -Present value is the concept that states an amount of money today is worth more than that same amount in the future. In other words, money received in the future is not worth as much as an equal amount received today.

Detailed explanation-3: -Commodity money is a medium of exchange with intrinsic value due to its use for purposes other than money.

Detailed explanation-4: -Answer and Explanation: The correct answer is b. Price mechanism. The price mechanism is not a function of money.

There is 1 question to complete.
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