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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.
State whether the following statements are TRUE or FALSE with reason.
Cheque is not legal tender money.
What is a barter system?
What are the main functions of money?
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.
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 |
"Does a shirt priced at Rs. 300 exemplify the store of value function of money? Select the appropriate option:
When all goods have their prices written in rupees, money is acting as ______.
Saving pocket money in a piggy bank mainly shows which function of money?
Why is money called the most liquid asset?
Who is known for classifying the functions of money into primary, secondary, and contingent functions?
Store of Value means a store of wealth or what for future use?
Store of Value is also called which function of money?
Which function helps transfer value from one person to another and from one place to another?
Comparing prices of two brands of chips is an everyday example of which function?
Which pair consists of the Primary functions of money?
