Question

Statement (1): Currency is legal lender money.

Statement (2): Measure of value function of money facilitates future payments.

Options

• Both the statements are true.

• Both the statements are false.

• Statement 1 is true, Statement 2 is false.

• Statement 2 is true, Statement 1 is false.

Answer 1

Statement 1 is true, Statement 2 is false.

Explanation:

• Statement (1): Currency is legal tender money. By law, it must be accepted as a valid form of payment for all debts and transactions within the country.
• Statement (2): The Standard of Deferred Payments function of money, rather than the value measure, permits future or deferred payments. The measure of value (unit of account) solely expresses current pricing for products and services.