Economy, asked by hamiranjaa123, 9 months ago

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(11. Define money. Explain the primary functions of money
2012
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2013​

Answers

Answered by AayaanKumar041007
0

Answer:

i don't understand the question.....

Answered by gaurav11643
0

Money is any object that is generally accepted as payment for goods and services and the repayment of debt.

Money has three primary functions Medium of exchange, Unit of account and Store of value.

  • Medium of exchange When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange.
  • Unit of account It is a standard numerical unit of measurement of market value of goods, services and other transactions. It is a standard of relative worth and deferred payment and as such is necessary prerequisite for the formulation of commercial agreements that involve debt. To function as a unit of account, money must be divisible into smaller units without loss of value, fungible (one unit or piece must be perceived as equivalent to any other) and a specific weight or size to be verifiably countable.
  • Store of value To act as a store of value, money must be reliably saved, stored and retrieved. It must be predictably usable as a medium of exchange when it is retrieved. Additionally, the value of money must remain stable over time.

I hope it will be helpful to you.

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