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Questions
State the two primary functions of money.
Give two primary functions of money.
Explain two primary functions of money.
Explain how money performs the function as a measure of value.
Explain the following function of money.
Medium of exchange.
State two important functions of money.
Solution
- Medium of exchange and measure of value are the two primary functions of money. "Medium of exchange" allows for the easy exchange of goods and services since money is widely accepted as a medium of trade.
- The "Measure of Value" function makes calculating the monetary value of items or services easier. Comparing the market prices of various items makes it simple to calculate the exchange rate. All records are kept and maintained in terms of the monetary unit, for example, Rupee, Dollar, Pound etc.
Notes
Students should refer to the answer according to their questions.
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