Advertisements
Advertisements
Question
“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.
Options
Medium of exchange
Store of value
Measure of value
Transfer of value
Advertisements
Solution
Measure of value
Explanation:
The statement "Money helps to express the monetary value of goods and services in the market" refers to the function of money that allows it to act as a common standard for the valuation of goods and services. This enables all parties in an economy to make decisions about what to exchange, how much to exchange, and to compare the value of different goods and services efficiently.
APPEARS IN
RELATED QUESTIONS
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 are the main functions of money? How does money overcome the shortcomings of a barter system?
Explain primary, secondary and contingent functions of money.
Fill in the blank with appropriate alternatives given below
Medium of exchange is __________ function of money.
Money on wings indicates ______.
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?
Why is money called the most liquid asset?
Who is known for classifying the functions of money into primary, secondary, and contingent functions?
