Question

Match the following:Group A 1) Near Money 2) Secondary function of money 3) Commodity Money 4) Barter 5) Legal tender Group B a) Sea Shells b) Double coincidence of wants c) Fiat money d) Measure of value e) Bills of exchange f) Standard of deferred payments g) Metalic money.

Answer 1

1) Near Money - e) Bills of exchange

Near money are used as bill of exchange as they provide all the major function of actual money.

2) Secondary function of money - f) Standard of deferred payments

Standard of conceded instalments is considered as auxiliary capacity of cash.

3) Commodity Money - b) Double coincidence of wants

The commodity money can be either used as commodity or as money as per the requirement. Hence it is considered as double coincidence of wants.

4) Barter - a) Sea Shells

Shells were used as money to buy commodities by Chinese people.

5) Legal tender - c) Fiat money

Fiat cash is money that a legislature has announced to be legitimate delicate, however it isn't supported by a physical product.