Money: Meaning and Functions

There is no content available!

To Access the full content, Please Purchase

  • Q1

    Fiat money includes

    Marks:1
    Answer:

    currency notes and coins.

    Explanation:

    Fiat money is the money issued on the order of the government, hence only the currency in circulation is the fiat money.

    View Answer
  • Q2

    The monetary system of note issue followed by India is

    Marks:1
    Answer:

    minimum reserve system.

    Explanation:

    India follows a managed paper currency standard with a minimum reserve system of note issue. The currency of the country is backed by the reserves of gold and foreign exchange of INR200 crores.

    View Answer
  • Q3

    C-C economy is one in which exchange is between

    Marks:1
    Answer:

    commodity to commodity.

    Explanation:
    C stands for commodity. C-C economy is one in which commodities are exchanged for commodities or in which goods are exchanged for goods. C-C economy is an economy dominated by barter system of exchange.
    View Answer
  • Q4

    Exchange of goods against goods is called

    Marks:1
    Answer:

    barter system.

    Explanation:
    Exchange of goods with goods is called barter system of exchange. Now, it is replaced by money as a medium of exchange.
    View Answer
  • Q5

    The main characteristic of money is

    Marks:1
    Answer:

    general acceptability.

    Explanation:

    The main characteristics of money is general acceptability.  Medium of exchange, measure of value and store of value are functions of money.

    View Answer