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Money And Banking
Question
Give functional definition of money.
Solution
Functional definition of money. It is defined in terms of its functions. Accordingly money is that which money does. It is based on the four functions of money already discussed. Broadly anything which is generally accepted in payment of debt and as payment of goods and services should be included in money supply. Alternatively if a good is generally acceptable in payment and generally used as medium of payments, it should be treated as money no matter what its legal status is.
Some More Questions From Money And Banking Chapter
What are the main functions of money? How does money overcome the shortcomings of a barter system?
Or
(a) Define money.
(b) Describe its functions. What is its main function?
or
Briefly explain any two/four functions of money.
or
Explain ‘medium of exchange’ function of money.
or
Explain the ‘unit of account/measure of value’ function.
or
Explain ‘standard of deferred payment function’ of money.
or
Explain the store of value function of money.
or
How has money solved the problems of barter?
or
Describe importance of money in a modern economy.
What is a ‘legal tender’? What is ‘fiat money’?
Distinguish between limited legal tender and unlimited legal tender.
Give functional definition of money.
Give narrow definition and broad definition of money.
Write short notes on the following:
Standard and Token coins.
Write short notes on the following:
Credit money
What is High Powered Money?
or
Write short notes on the following:
High powered money.
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Mock Test Series
Mock Test Series