Student Community
Answer
The above statement is justified in a two-sector economy. In a two-sector economy, there are only two sectors. Firm Households the following statement is justified under the following assumption. Households spend all their income Firms retain nothing as undistributed profit…
Ans – (b) Explanation:- Store of value function of money:- Money as a store of value means that money can be used to transfer purchasing power from present to future. Money is a way to store wealth. It provides security…
Ans – (c) Explanation:- Money as a standard of deferred payments means that money acts as a ‘standard’ for payments, which are to be made in the future. Every day, millions of transactions take place in which payments are not…
Ans – (d) Explanation:- It does not include term deposits with the banks and term deposits are not readily available for payments.
Ans – (b) Explanation:- Limited Legal Tender: It refers to that form of legal tender money, which can be paid in the discharge of a debt up to a certain limit. Beyond this limit, a person may refuse to accept…
Ans – (b) Explanation:- As a medium of exchange, money has removed the major difficulty of lack of double coincidence of wants in the barter system. It separates the acts of sale and purchase of goods and services and helps…
Ans – (b) Explanation: Money as a measure (unit) of value means that money works as a common denomination, in which values of all goods and services are expressed. 1. By reducing the value of all goods and services to…
Ans – (d) Explanation: Money as a standard of deferred payments means that money acts as a ‘standard’ for payments, which are to be made in the future. Every day, millions of transactions take place in which payments are not…
Ans – (d) Explanation: Money as a standard of deferred payments means that money acts as a ‘standard’ for payments, which are to be made in the future. Every day, millions of transactions take place in which payments are not…
Ans – (c) Explanation:- Money as a measure of value means that money works as a common denomination, in which values of all goods and services are expressed. 1. By reducing the value of all goods and services to a…