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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.
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Cheque is not legal tender money.
What is a barter system? What are its drawbacks?
What are the main functions of money? How does money overcome the shortcomings of a barter system?
Fill in the blank with appropriate alternatives given below
Medium of exchange is __________ function of money.
Money is something that 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?
Identify the correctly matched pair of items in Column A to that of Column B.
| Column A | Column B | ||
| 1. | supply of money | a | Money in circulation at a point |
| 2. | Stock of Money | b | Supply of money considered over a period |
| 3. | Flow of Money | c | Money held by Public and the Bank today |
| 4. | Reserve Money | d | Supply of money studied at a point of time |
“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.
Which function of money makes it possible to save now and spend later for future needs?
When all goods have their prices written in rupees, money is acting as ______.
The total income of a country expressed in money terms represents which function of money?
Who is known for classifying the functions of money into primary, secondary, and contingent functions?
