A. Money is used in the Barter system
B. The value of household services rendered by housewives can be expressed in Monetary units.
C. Money is commonly accepted as Medium of Exchange
D. Money can act as the store of value
E. Commercial Bank can print Money
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
Statements C and D only are correct.
A. Money is used in the Barter system: This statement is incorrect. Money is used to replace the barter system, where goods and services were exchanged directly. In a barter system, there is no common medium of exchange like money.
B. The value of household services rendered by housewives can be expressed in Monetary units.:This statement is incorrect as traditional economic system does not account for the value of household services in monetary terms.
C. Money is commonly accepted as a Medium of Exchange: This statement is correct. One of the primary functions of money is to serve as a medium of exchange. Money facilitates transactions by acting as a widely accepted intermediary in the exchange of goods and services.
D. Money can act as the store of value: This statement is correct. Money, especially in the form of savings or investments, can retain its value over time. People use money not only for immediate transactions but also as a way to store value for future use.
E. Commercial Bank can print Money: This statement is incorrect. In most countries, the authority to issue currency (physical money) lies with the central bank, not commercial banks.