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प्रश्न
Money performs both primary and secondary functions.
Identify a specific function of money which is related to future payments. State a reason.
उत्तर
The function of money which is related to future payments is the Standard of deferred payment.
Credit is needed when we cannot pay for a commodity or service that we wish to consume now. Money serves as a standard of deferred payment. Deffered payments refer to those payments which are to be made in future. In a modern economy, a large number of transactions involve future payments, which can easily be stated in terms of money. Suppose you borrow a sum of ₹ 20,000 at 10 percent interest per annum for one year. It means that you promise to pay ₹ 22,000 (₹ 20,000 as principal and ₹ 2,000 as interest) after one year. Money serves as a standard of such future payments.
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संबंधित प्रश्न
The function of money which allows a person to pay for a commodity at a future date is called as ______.
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?
How does money help in the distribution of national income?
Explain the transfer of value function of money.
How does money perform its role as medium of Exchange.
Explain the secondary functions of money.
Distinguish between limited legal tender and unlimited legal tender.
How does money help the consumers and producers?
