Check sibling questions

Definition and Function of Money

Definition of Money - Teachoo.JPG

What are the Functions of Money - Teachoo.JPG

Does Money only act as Store of Value?

No

Other assets also act as store of value, like Property, Gold, stocks etc

 

Why are these assets not used in place of money?

Because these are not easily convertible

Also they do not have universal acceptability

 

NCERT QUESTIONS

Question 2

What are the main functions of money?

How does money overcome the shortcomings of a barter system?

View Answer

ASSERTION AND REASONING QUESTIONS

In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R).

Assertion (A): Money is what money does.

Reason (R): Money facilitates exchange of goods and services.

Mark the correct choice:

  1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
  2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
  3. Assertion (A) is true, but Reason (R) is false.
  4. Assertion (A) is false, but Reason (R) is true.
View Answer

Transcript

Definition of Money Money is medium of exchange, Measure and Store of Value and Means for Standard deferred payment Money is Medium of Exchange Measure of Value Store of Value And Means for Standard Deferred Payment Goods and Services can be exchanged because of money We decide Price of different goods and services in terms of money Money can be saved and Stored for use by future generation If Payment to be made in future, we know amount to be paid What are the Functions of Money Functions of money can be derived from Definition of Money Definition of Money Functions of Money Money Act as Medium of Exchange Goods and Services can be exchanged for money Money Act as Measure of Value We decide Price of different goods and services in terms of money Money Act as Store of Value Money can be saved and Stored for use by future generation Money Act as Means for Standard of Deferred Payment If Payment to be made in future , we know amount to be paid

CA Maninder Singh's photo - Co-founder, Teachoo

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 12 years and a teacher from the past 16 years. He teaches Science, Economics, Accounting and English at Teachoo