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How Does Money Act as a Standard of Deferred Payment? - Economics

How does money act as a standard of deferred payment?

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Solution

Deferred payments refer to payments which are made in the future. Money has made deferred payments easier. When money is borrowed, the principal and interest amounts have to be returned to the lender. However, these transactions are not possible in terms of goods and services. Money performs this function more effectively.

Concept: Meaning and Functions of Money
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