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प्रश्न
How does money help the consumers and producers?
संक्षेप में उत्तर
उत्तर
- Money is very important to the consumers (or households) who use their money income to maximise total satisfaction. For this, they equate marginal utility with price which is measured in terms of money.
- Money helps the producers in deciding quantity of different factors of production to be employed so that profit is maximised.
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Functions of Money
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संबंधित प्रश्न
Explain how money acts as a measure of value.
The function of money which allows a person to pay for a commodity at a future date is called as ______.
Which of the following is a contingent function of money?
Observe the relationship of the first pair of words and complete the second pair.
The primary function of money : Medium of exchange. The secondary function of money : ______.
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | Currency Notes | A. | General acceptability |
| (ii) | Demand deposits | B. | Lack of double coincidence of wants |
| (iii) | Feature of money | C. | Legal tender |
| (iv) | Problem of barter exchange | D. | Bank money |
‘Which function of money is most closely linked to saving?
How does money act as a measure of value?
Explain the contingent functions of money.
Explain the secondary functions of money.
Describe how money has removed the defects of the barter system.
