Question

Explain the ‘Standard of deferred payment’.

Class XII
Money and Banking

Answer 1

 standard of deferred payment is the accepted way, in a given market, to settle a debt – a unit in which debts are denominated. It is one of the defining functions of money for example, while the gold standard reigned, gold or any currency convertible to gold at a fixed rate constituted such a standard. As of 2010, the US dollar and the euro are the most generally accepted standards for international settlements.

Answer 2

Answer:

Explanation:

In economics standard of deferred payment is a function of money. It is the function of being a widely accepted way to value a debt, thereby allowing goods and services to be acquired now and paid for in the future.