Advertisements
Advertisements
प्रश्न
Explain the ‘unit of accounts’ function of money. How has it solved the related problem created by barter?
Explain the significance of the 'Unit of Account' function of money
उत्तर
Unit of Account
It is the monetary expression of the market value of goods and services. These goods are measured in terms of gram, litre and metre. This common unit of measurement enables the buyer and seller to compare the value of goods in the market. This enhances the activities of buying and selling in the market.
The common device to measure goods is completely absent under the barter system. The sale and purchase of goods occur at the same time. Their sale and purchase values also remain equal at that point. After existence of money, a person can purchase or sell goods with cash at any point of time. Thus, the act of purchase and sale has been separated.
The introduction of money resulted in the end of the barter system where the value of goods are measured in terms of money and are hence progressed with market activities.
APPEARS IN
संबंधित प्रश्न
Explain the significance of 'medium of exchange' function of money
Explain the 'medium of exchange' function of money. How has it solved the related problem created by barter?
Write answer in 'one' or 'two' paragraph .
Explain the primary functions of money.
State whether the following statements are TRUE or FALSE with reason.
Cheque is not legal tender money.
What is a barter system? What are its drawbacks?
What are the main functions of money? How does money overcome the shortcomings of a barter system?
Answer the following question
What are the contingent functions of money?
Fill in the blank with appropriate alternatives given below
Medium of exchange is __________ function of money.
______ is the primary function of money.
Money is a medium of ______.
From the following data, calculate "Net Value Added at Factor Cost".
| S.no. | Content | (Rs. in Lakhs) |
| (i) | Sales | 400 |
| (ii) | Change in Stock | (−) 20 |
| (iii) | Intermediate consumption | 200 |
| (iv) | Net indirect taxes | 40 |
| (v) | Exports | 50 |
| (vi) | Depreciation | 70 |
“Money helps to express the monetary value of goods and services in the market”.
On the basis of the given statement, Identify the function performed by money.
"Does a shirt priced at Rs. 300 exemplify the store of value function of money? Select the appropriate option:
