Question

Q. 1. Complete the correlation:
1) Primary function of money : Medium of exchange.
D : Transfer of value
2)
: Basis of credit : Secondary functions of
money : standard of deferred payments.
3) Commodity money : Shells :: D : Credit
card
4) Divisibility : Smaller denomination;
Easy to carry from one place to another.
5) Barter system : Goods :: Modern economy M
oth​

Answer 1

Answer:

bank deposit is transfer of value

Answer 2

Answer:  

1) 'The 'primary function of money': Medium of exchange:: Bank Deposit: Transfer of value

2) Purchase of securities: Basis of credit:: Secondary functions of money: 'Standard of deferred payments'

3) Commodity money: Shells:: Home equity line: Credit card  

4) Divisibility: Smaller Denomination:: Convenience: Easy to carry from one place to another  

5) Barter System: Goods:: Modern economy: Technology  

Explanation:  

• As the primary function of money acts as a 'medium of exchange', bank deposit is an example of transfer of value, as the value of money is safeguarded to the bank for maintenance and interest-earning and then transferred back.
• The purchase of securities is a basis of credit for commercial banks.
• The home equity line is a type of credit loans.
• Convenience is the ease of carrying objects 'from one place to another'.
• As the barter system was established on the basis of goods, today the modern economy is established on the basis of technology.