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प्रश्न
Explain with reasons, whether you agree or disagree with the following statement
Money also performs certain contingent functions.
उत्तर
Yes, we agree that money performs some contingent functions. The following are the various contingent functions that money performs.
- Facilitates credit- Money facilitates the functioning of credit instruments such as cheques, promissory notes, bills of exchange etc.
- Facilitates distribution of income- Factor payments can be made easily in the form of monetary remunerations such as wages, rent, interest and profit.
- Maximises consumers’ and producers’ satisfaction- Since all goods, services and factors of production are valued in terms of money, it is possible for the consumers to maximise his/her satisfaction by equalising marginal utilities of goods and for a producer to maximise production by equalising marginal productivities of the different factors.
- Liquidity- Money is the most liquid of all assets and wealth. Gold, silver, land, cheques etc. are not as liquid as money. If a need arises, these assets have to be converted into money, but on the other hand, money need not to be converted into any other form as it is readily acceptable.
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संबंधित प्रश्न
Answer the following question.
Explain the secondary functions of money.
Give reasons or explain the following statements :
The difficulties of barter system are removed by money.
Write Short Note.
Secondary function of money
State with reason whether you agree or disagree with the following statement.
Anything can function as money.
State with reason whether you agree or disagree with the following statement.
Money performs various functions.
Distinguish between
Primary functions of money and Secondary functions of money.
Fill in the blank with appropriate alternatives given below
In the initial stage of development, __________ was used.
Answer the following question.
Explain any two secondary functions of money.
