Question

What possess general acceptability?

(i) Bank draft

(ii) Money

(iii) Bill of exchange

(iv) None of these

Answer 1

Answer:

Money is anything that possesses general acceptability as a medium of exchange and a measure of value; and performing all other functions which it should perform for a smooth and orderly functioning of the economic system.

Answer 2

Answer:

(ii)Money possess general acceptability

Explanation:

• General acceptability: It means that most business and individuals will accept that particular thing in exchange for goods and services.

• This can be defined as anything that has a fixed price in terms of the unit. of account and is generally accepted within a society in payment of. debt / goods / services.
• Anything which is widely accepted in payment for goods is called money.

• Since the law declares Money as a legal tender, it has an inherent qualities of a general acceptability.
• So, the correct answer is (ii) Money possess general acceptability.

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