Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

What characteristics of money does gold and bonds possess?
i. Asset
ii. Not perishable
iii. Considerably lower storage costs
iv. Universal acceptability
v. Easy conversion to other commodities

Options:

i, ii, iii

iv, v

iii, iv, v

i, iii, v

Correct Answer:

i, ii, iii

Explanation:

Money, gold and bonds are assets and have considerably lower storage costs as compared to other commodities like grains and rice. They are also non-perishable.