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Question
"Mr. Sahotra borrowed funds from bank for purchasing a new house".
From the above statement, identify the indicated function of money:
Options
Medium of exchange
Store of value
Unit of account
Standard of deferred payments
MCQ
Solution
Standard of deferred payments
Explanation:
When Mr. Sahotra borrows funds from a bank to buy a new house, he agrees to repay the loan. Borrowed funds are used as a benchmark for postponed payments, representing a financial obligation to be settled later.
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