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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
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?
Answer the following question
What are the contingent functions of money?
Explain primary, secondary and contingent functions of money.
Fill in the blank with appropriate alternatives given below
Medium of exchange is __________ function of money.
Medium of exchange and measure of value is ______.
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 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.
Which function of money helps avoid the problem of finding someone who wants exactly what you offer in exchange?
Which function of money makes it possible to save now and spend later for future needs?
Which major problem of the barter system is solved directly by using money?
When all goods have their prices written in rupees, money is acting as ______.
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 ______.
Who is known for classifying the functions of money into primary, secondary, and contingent functions?
