Match the following: 1. A unit o

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Match the following:

1.	A unit of value	A.	Commonly accepted measure of value
2.	A medium of exchange	B.	Savings done in terms of money
3.	A standard of deferred payments	C.	Credit transactions
4.	A store of value	D.	1 pen = 3 pencils

Options:

1-A, 2-B, 3-C, 4-D

1-D, 2-B, 3-C, 4-A

1-D, 2-A, 3-C, 4-B

1-D, 2-A, 3-B, 4-C

Correct Answer:

1-D, 2-A, 3-C, 4-B

Explanation:

The following are functions associated with money:

Primary functions: Money as a unit of value - Money is a standard unit of quoting prices of goods and services, Medium of exchange- It solves the problem of double co-incidence of wants as it is commonly accepted measure of value.
Secondary functions: A standard of deferred payments: It has facilitated market transactions of buying, selling etc. Money has made possible credit transactions, Store of value: Money is an asset and can be stored for future use.