Practicing Success
A. Money is used in the Barter system Choose the correct answer from the options given below: |
A and B only C and D only E and B only B and D only |
C and D only |
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. |