Question

Do you agree/ disagree? Give reasons.

1. Residual income is the only type of income

2. There are many contingent functions of money​

Answer 1

1.Residual income is income that one continues to receive after the completion of the income-producing work. Examples of residual income include royalties, rental/real estate income, interest and dividend income, and income from the ongoing sale of consumer goods (such as music, digital art, or books), among others.

2.Some of the contingent functions of money in economics are as follows: (i) Distribution of National Income (ii) Maximization of Satisfaction (iii) Basis of Credit Creation (iv) Productivity of Capital (v) Bearer of Options and (vi) Guarantee of Solvency. ...

Contingent functions of money include distribution of income, measurement and maximisation of utility, basis of credit, liquidity to wealth etc.