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प्रश्न
Write answer in 'one' or 'two' paragraph .
Explain the primary functions of money.
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उत्तर
There are two main primary functions of money:
i. Medium of exchange - Money acts as a medium of exchange as it facilitates exchange through a common medium i.e. facilitates exchange through currency. With money as a medium, the two components of a transaction, namely sale and purchase, can be easily separated.
ii. Unit of value - Money serves as a common medium or unit of value. The goods and services are of different types and are measurable in different units such as meter, litre, gram etc. Money has provided a common yardstick to measure all these different units in a common denomination known as price. This has made different goods and services comparable to each other in terms of their respective prices.
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संबंधित प्रश्न
Explain the ‘unit of accounts’ function of money. How has it solved the related problem created by barter?
Explain the significance of 'medium of exchange' function of money
Explain the 'medium of exchange' function of money. How has it solved the related problem created by barter?
State whether the following statements are TRUE or FALSE with reason.
Cheque is not legal tender money.
What is a barter system?
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 on wings indicates ______.
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 |
‘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:
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?
Paying rent each month is an example of which primary function of money?
Why is money called the most liquid asset?
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 ______.
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?
Which function of money allows a person in one city to send value to a person in another city?
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?
Medium of Exchange promotes efficiency in exchange and production, specialisation and which other feature?
Which function of money is also called Unit of Account?
What are deferred payments?
Which feature supports money as a Store of Value?
Which function helps transfer value from one person to another and from one place to another?
For Maximisation of Profit / Employment of Factors, money helps producers decide what?
In modern economies, what plays a key role?
Which group of variables is measured in money terms?
Which pair consists of the Primary functions of money?
Which set consists of the Secondary functions of money?
