Question : This function helps in calculating relative price of goods and services. Due to this reason it is regarded as
Option 1: Medium of exchange
Option 2: Measure of value (Unit of value)
Option 3: Store of value
Option 4: Standard of deferred payment.
Correct Answer: Measure of value (Unit of value)
Solution : Money helps in calculating relative price of goods and services. Due to this reason, it is regarded as Unit of Account. Hence Option B is correct.
Question : This function of money has simplified the borrowing and lending operations.
Question : It was difficult to use goods as a store of wealth due to perishable nature of some goods and high cost of storage. Which function of money has solved this problem.
Question : This function provides security to individuals to meet contingencies, unpredictable emergencies and to pay future debts.
Question : This function has removed the major difficulty of lack of double coincidence of wants and inconvenience associated with the barter system.
Question : It is possible to derive the value of the Gross Domestic Product (GDP) of a country. Which function of money is applicable here?
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