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Explain the important functions of money. |
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Answer» Important functions of money are : a) A unit of value – Money is the generally accepted as a unit of value of all goods and services. b) Medium of exchange – Money facilitates the buying and selling of goods and services. c) A standard of deferred payment – Money helps in settling the loan taken and repayment is made in future date. d) Storage of value – Store of value means shifting of purchasing power from the present to the future. As such, the holders of money are holders of generalised purchasing power from present to the future. |
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