Money and Credit........................Part II. Extra Questions and Answers

Answer the following questions

Q 1. Give the meaning and functions of money.

Ans.Meaning of money: Money may be anything chosen by common consent as a medium of exchange and measure of value.

Functions of money:

  I. Primary functions:
  a Medium of exchange 

  b Medium of value

  
  II. Secondary functions:

  a Store of value 
  b Standard of pending payments 
  c Transfer of value