Explain Standard of deferred payments function of money.

1.	Explain Standard of deferred payments function of money.
Answer» 1. Credit has become the life and blood of a modem capitalist economy. 2. In millions of transactions, instant payments are not made. 3. The debtors make a promise that they will make payments on some future date. In those situations money acts as a standard of deferred payments. 4. It has become possible because money has general acceptability, its value is stable, it is durable and homogeneous.

Answer»

1. Credit has become the life and blood of a modem capitalist economy.

2. In millions of transactions, instant payments are not made.

3. The debtors make a promise that they will make payments on some future date. In those situations money acts as a standard of deferred payments.

4. It has become possible because money has general acceptability, its value is stable, it is durable and homogeneous.

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Explain Standard of deferred payments function of money.

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