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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acceptability
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Detailed explanation-1: -By using money, such problems can be overcome and people are able to save for the future. Modern form of money (such as coins, notes and bank deposits) permit people to save their surplus income. Thus money is used as a store of purchasing power.
Detailed explanation-2: -In the monetary economy, money is considered a store of value, where it can be used as a means of saving and allocating capital. Money’s property as a store of value facilitates a transfer of purchasing power over time.
Detailed explanation-3: -Dynamic Functions of Money: Further, it helps in converting savings into investments.
Detailed explanation-4: -Money acts as a unit of account or money is the measure of exchange value. This means that money is a sort of common denominator, through which the exchange value of all goods and services can be expressed without any difficulty.
Detailed explanation-5: -A medium of exchange. A standard of deferred payment. A store of wealth. A measure of value. 13-Dec-2022