Question

Statement (1): In India, rupee is the unit of account.

Statement (2): Money works as a common parameter in which the value of every good or service is expressed in monetary term.

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

Both the statements are true.

Explanation:

• Statement (1): India’s national currency is the Indian rupee (INR). A unit of account is a standard monetary unit used to determine the worth of commodities, services, economic transactions, and financial balance sheets.
• Statement (2): Money’s principal function is to serve as a unit of account and a measure of value. Money acts as a universal, common parameter, allowing people to quantify, compare, and describe the economic value of very varied items and services in uniform monetary terms.