Question

Explain the following statement:

Money provides a link between the present and the future.

Answer 1

Money serves as a link between the present and the future; hence, it acts as a standard for deferred payments. The term "deferred payments" refer to payments made in the future. The repayment of loans is sometimes known as deferred payments. Money has made many loan payments and transactions very easier than they were previously. When we borrow money from someone, we must repay both the principal and the interest amount. It is therefore difficult to conduct such transactions in the form of commodities and services.