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प्रश्न
Explain the significance of 'medium of exchange' function of money
Explain the medium of exchange function of money.
Explain the significance of 'medium of exchange' function of money.
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उत्तर
Medium of exchange:The primary function of money is to act as a medium of exchange between two parties involved in a transaction. It avoids the practical problems of wastage of time and resources involved in the barter system of exchange and it improves the efficiency of the transaction. It promotes allocation efficiency in the trade and production of goods and services. For the barter system, the sale and purchase of goods occurs at the same time. Their sale and purchase value also remains equal at that point. A person can purchase or sell goods with cash without selling or purchasing any good at that point, after money came into existence. Thus, the act of purchase and sale has been separated. Thereby the medium of exchange facilitated sale and purchase very easily in terms of monetary value.
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संबंधित प्रश्न
Explain the 'medium of exchange' function of money. How has it solved the related problem created by barter?
Write answer in 'one' or 'two' paragraph .
Explain the primary functions of money.
Fill in the blank with appropriate alternatives given below
Medium of exchange is __________ function of money.
Money is something that is ______.
Medium of exchange and measure of value is ______.
From the following data, calculate "Net Value Added at Factor Cost".
| S.no. | Content | (Rs. in Lakhs) |
| (i) | Sales | 400 |
| (ii) | Change in Stock | (−) 20 |
| (iii) | Intermediate consumption | 200 |
| (iv) | Net indirect taxes | 40 |
| (v) | Exports | 50 |
| (vi) | Depreciation | 70 |
Which of the following are the functions of money?
‘Money is an asset which can be stored for use in future.
In the light of given statement, identify the function of money.
What does money provide when individuals compare prices to determine the worth of goods?
Which function of money makes it possible to save now and spend later for future needs?
Paying rent each month is an example of which primary function of money?
Why is money called the most liquid asset?
Which function of money makes it easy to repay loans in the future?
Saving pocket money in a piggy bank mainly shows which function of money?
Why is money called the most liquid asset?
The total income of a country expressed in money terms represents which function of money?
Banks use public deposits of money to create loans. Here money is mainly acting as ______.
