Advertisements
Advertisements
Question
Solution
The saving function is primarily derived from the consumption function as the amount of saving is equal to the difference between the income and consumption expenditure.
Following are a few determinants:
i. Motive of precaution: People save money for the future in order to meet unexpected expenditure. This effects the savings level.
ii. Motive of foresightedness: People cut down their spending in order to meet future requirements for money. For examples, requirements for higher education, marriage, buying a house etc. This increases their savings level.
iii. Motive of enterprise: People prevent current consumption and save for the purpose of investing. Under this motive, people save to invest in a profitable enterprise.
iv. Motive of calculation: Under this motive, people save to invest in shares and debentures in order to increase their income.
APPEARS IN
RELATED QUESTIONS
Explain the significance of 'medium of exchange' function of money
Explain the 'medium of exchange' function of money. How has it solved the related problem created by barter?
Write answer in 'one' or 'two' paragraph .
Explain the primary functions of money.
State whether the following statements are TRUE or FALSE with reason.
Cheque is not legal tender money.
What is a barter system? What are its drawbacks?
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 is something that is ______.
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 |
Which of the following are the functions of money?
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 |
“The value of all goods and services can be expressed in monetary units.”
On the basis of the given statement, identify the function performed by money:
‘Money is an asset which can be stored for use in future.
In the light of given statement, identify the function of money.
“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.
"Does a shirt priced at Rs. 300 exemplify the store of value function of money? Select the appropriate option:
