Match the statements given under A with the correct options given under B

Ans –

(i) – (a)

(ii) – (b)

Explanation:-

Measure of value:-

Under the Barter system, different goods were at different values and there was no common denomination to express their exchange ratios. But, money is the measuring rod that expresses the value of other commodities. It becomes easier to compare the relative values of any two commodities. Thus this function is also known as a unit of account.

Medium of Exchange:-

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 both parties in obtaining maximum satisfaction. A buyer can buy goods through money and a seller can sell goods for money.