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Question
“Money helps to express the monetary value of goods and services in the market”.
On the basis of the given statement, Identify the function performed by money.
Options
Medium of exchange
Store of value
Measure of value
Transfer of value
Solution
Measure of value
Explanation:
The statement "Money helps to express the monetary value of goods and services in the market" refers to the function of money that allows it to act as a common standard for the valuation of goods and services. This enables all parties in an economy to make decisions about what to exchange, how much to exchange, and to compare the value of different goods and services efficiently.
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RELATED QUESTIONS
What are the main functions of money? How does money overcome the shortcomings of a barter system?
Answer the following question
What are the contingent functions of money?
Answer in detail -
Explain primary, secondary and contingent functions of money.
Fill in the blank with appropriate alternatives given below
Medium of exchange is __________ function of money.
______ is the primary function of money.
Money is a medium of ______.
Money on wings indicates ______.
From the following data, calculate "Net Value Added at Factor Cost".
| S.no. | Content | (Rs. in Lakhs) |
| (i) | Sales | 400 |
| (ii) | Change in Stock | (−) 20 |
| (iii) | Intermediate consumption | 200 |
| (iv) | Net indirect taxes | 40 |
| (v) | Exports | 50 |
| (vi) | Depreciation | 70 |
Identify the correctly matched pair of items in Column A to that of Column B.
| Column A | Column B | ||
| 1. | supply of money | a | Money in circulation at a point |
| 2. | Stock of Money | b | Supply of money considered over a period |
| 3. | Flow of Money | c | Money held by Public and the Bank today |
| 4. | Reserve Money | d | Supply of money studied at a point of time |
