ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money is often defined in terms of the three functions or services that it provides. 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: -An example of a store of value is someone earning money on their paycheck and then depositing in the bank later on. They can then withdraw this money, knowing it retained its value over time, and spend it on goods and services.

Detailed explanation-3: -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-4: -A medium of exchange. A standard of deferred payment. A store of wealth. A measure of value. 13-Dec-2022