ECONOMICS
MONEY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Knowing how much something cost
|
|
|
Measuring the price with a ruler
|
|
|
Money serves as a measuring stick used to express the worth of something
|
|
|
The feature of money that allows tmr one to have pass between earning income
|
Detailed explanation-1: -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-2: -The most common way to measure currency value is by measuring its convertibility to other currencies – also known as the exchange rate.
Detailed explanation-3: -Because money is expressed in units of a currency, money acts as a measure of value that enables people to compare the value of different goods and services. For example, assume admission to a movie is $10, and a latte at Starbucks is $5. The theater would say the cost of admission is $10, not two Starbucks® lattes.
Detailed explanation-4: -Index Numbers: The device of index numbers comes to our aid in measuring changes in the value of money or price level. An index number is a statement in the form of a table which represents a change in the general price level. Index numbers have great importance in these days.
Detailed explanation-5: -Money acts as a standard of value by making it easy for people to compare the value of different goods and services according to a uniform reference point. Money can also be used as a store of value to make transactions more efficient.