Which function of money has removed the difficulty of contractual and future payments?
Which function of money has removed the difficulty of contractual and future payments?
(a) Medium of exchange
(b) Measure of value
(c) Store of value
(d) Standard of deferred payments
Anurag Pathak Changed status to publish December 15, 2023
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 made immediately. Money encourages such transactions and helps in capital formation and economic development of the economy.
This function of money is significant because:
1. Money as a standard of deferred payments has simplified the borrowing and lending operations.
2. It has led to the creation of financial institutions.
Anurag Pathak Changed status to publish December 15, 2023
