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Money And Banking

Question
CBSEENEC12012756
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How does use of money overcome the drawbacks of barter?

Solution

(i) Money as medium exchange solves problem of lack of double coincidence.
(ii) Money as measure of value solves problem of absence of common measure.
(iii) Money as store of value solves problem of storing wealth.
(iv) Money as standard of deferred payment solves difficulty of borrowing and lending.

Some More Questions From Money And Banking Chapter

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.

What is liquidity trap?

What monetary system does India follow?

Define money supply?  

What are the alternative definitions of money supply in India?
or
Describe alternative measures of money supply as used by RBI in India.

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