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प्रश्न
Explain the ‘unit of accounts’ function of money. How has it solved the related problem created by barter?
Explain the significance of the 'Unit of Account' function of money
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उत्तर
Unit of Account
It is the monetary expression of the market value of goods and services. These goods are measured in terms of gram, litre and metre. This common unit of measurement enables the buyer and seller to compare the value of goods in the market. This enhances the activities of buying and selling in the market.
The common device to measure goods is completely absent under the barter system. The sale and purchase of goods occur at the same time. Their sale and purchase values also remain equal at that point. After existence of money, a person can purchase or sell goods with cash at any point of time. Thus, the act of purchase and sale has been separated.
The introduction of money resulted in the end of the barter system where the value of goods are measured in terms of money and are hence progressed with market activities.
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संबंधित प्रश्न
Write answer in 'one' or 'two' paragraph .
Explain the primary functions of money.
What is a barter system? What are its drawbacks?
Fill in the blank with appropriate alternatives given below
Medium of exchange is __________ function of money.
______ is the primary function of money.
Money is a medium of ______.
Money is something that is ______.
Which of the following are the functions of money?
“The value of all goods and services can be expressed in monetary units.”
On the basis of the given statement, identify the function performed by money:
‘Money is an asset which can be stored for use in future.
In the light of given statement, identify the function of money.
“Money helps to express the monetary value of goods and services in the market”.
On the basis of the given statement, Identify the function performed by money.
"Does a shirt priced at Rs. 300 exemplify the store of value function of money? Select the appropriate option:
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?
Why is money called the most liquid asset?
Which major problem of the barter system is solved directly by using money?
Why is money called the most liquid asset?
Banks use public deposits of money to create loans. Here money is mainly acting as ______.
