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Question
Observe the relationship of the first pair of words and complete the second pair.
The primary function of money : Medium of exchange. The secondary function of money : ______.
Options
Measure of value
Distribution of national income
Maximisation of utility
Store of value
Solution
The primary function of money : Medium of exchange. The secondary function of money : Store of value.
Explanation:
The secondary function of money is to act as a store of value, meaning that money can be saved and used for future transactions without losing its value over time.
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RELATED QUESTIONS
Explain how money acts as a measure of value.
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| Column A | Column B | ||
| (i) | Currency Notes | A. | General acceptability |
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| (iv) | Problem of barter exchange | D. | Bank money |
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