Question

According to ______,"Money is anything that is generally acceptable as a means of exchange and at the same time acts as a measure and a store of value".
1. Professor Crowther
2. Alfred Marshall
3. Professor Walker
4. Lionel Robbins

Answer 1

Correct Answer - Option 1 : Professor Crowther

The correct answer is Professor Crowther.

• Money is the commonly accepted medium of exchange.
• Definitions of Money-
  • Professor Crowther: "Money is anything that is generally accepted as a means of exchange and at the same time acts as a measure and a store of value".
  • Prof Walker: "Money is what money does".

• Functions of Money-
  • Primary Functions-
    • Medium of Exchange
    • Measure of Value or Unit of account
  • Secondary Functions-
    • Standard of deferred payments
    • Store of value
    • Transfer of Value
  • Contingent Functions -
    • According to Prof. Kinley, in the modern period money plays an important role almost in all economic transactions.
    • Measurement of National Income
    • Imparts liquidity to wealth
    • Estimation of macro economic variables