Question

“Irfaan (a student) borrows ₹ 80,000 to finance his college fee. He plans to begin repaying the loan six months after his graduation, making payments over & span of ten years.”

Based on above text, identify the indicated function of money.

Options

• Medium of Exchange 

• Unit of Account

• Standard of Deferred Payments

• Store of Value

Answer 1

Standard of Deferred Payments

Explanation:

• Money serves as a Standard of Deferred Payments when transactions involve future payments, like loans or credit.
• In this case, Irfaan borrows money for education and plans to repay it over time, demonstrating this function of money.