Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
8.1k views
in Economics by (52.4k points)

Explain any FOUR Functions of Money.

1 Answer

+2 votes
by (48.4k points)
selected by
 
Best answer

Functions of Money are : 

Primary Functions : 

  • Medium of Exchange : Money serves as a Medium of Exchange and Facilitates the Buying and Selling of Goods, thereby Eliminating the Need for Double Coincidence of Needs and Wants as under Barter.
  • Measure of Value : Money has also Removed the Difficulty of Barter System by Serving as a Common Measure of Value. The Values of Various Commodities are Expressed in Terms of Money. Money as a Measure of Value has made Transactions Simple and Easy .
  • Standard of Deferred Payments : Money has always been used as a Standard of Deferred Payment . This Function of Money has Attained More Importance in Modern Times with the Extension of Trade based on Credit . As a result of this function, it has become possible to Express Future Payments in Terms of Money.
  • Store of Value : Classical Economists did not Recognize the Store of Value Function of Money. Keynes laid Stress on this Function of Money . People Store Money to Meet Unforeseen Contingencies . 

No related questions found

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...