Question

Which money is used to settle debts or make payment in future, it is said to perform the function of:

Options

• Standard of deferred payment

• Medium of exchange

• Transfer of value

• Store of value

Answer 1

Standard of deferred payment

Explanation:

Deferred payments refer to those payments which are to be made in future. In a modern economy, a large number of transactions involve future payments which can easily be stated in terms of money.