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The two primary functions of Money are 

(a) Medium of exchange 

(b) Measure of value.

The functions of Money are broadly classified as follows: 

I. Primary functions 

II. Secondary functions 

III. Contingent functions and 

IV. other functions

I. Primary Functions: The primary functions of money are as follows: a) Medium of Exchange: Money plays an important role as a medium of exchange. It facilitates exchange of goods for money. It has solved the problems of barter system. It helps the people to sell in one place and buy in another place. Money has widened the scope of market transactions. Money has become a circulating material between buyers and sellers.

(b) Measure of value: The money acts as a common measure of value. The values of all goods and services can be expressed in terms of money. As a measure of value, money performs the following functions:

•  The value of all goods and services are measured and expressed in terms of money. 
• Rate of exchange of goods and services expressed in money. 
• Facilitates the maintenance of accounts. 
• It facilitates price mechanism. 
• It makes goods and services comparable in terms of price.

II. Secondary functions: The secondary functions of money are as follows: a) Store of value: People can save part of their present income and hold the same for future. Money can be stored for precautionary motives needed to overcome financial stringencies.

(b) Standard of deferred payments: All the credit transactions are expressed in terms of money. The payment can be delayed or postponed. So, money can be used for delayed settlement of dues or financial commitments.

(c) Transfer of value: Money acts as a transfer of value from person to person and from place to place. As a transfer of value, money helps us to buy goods, properties or anything from any part of the country or the world. Further, money earned in different places can be brought or transferred to anywhere in the world.

III. Contingent Functions of Money: Other than Primary and Secondary functions, money also performs other functions which are as follows: a) Basis of Credit: Money serves as a basis of the credit. The modern credit system exists only because of existence of money.

(b) Distribution of National Income: Money helps in distribution of national income. The reward paid to factors of production in the form of rent, wages, interest and profit are nothing but the distribution of National Income at factor prices.

(c) Provides Liquidity and Uniformity: Money provides liquidity to all kinds of assets both movable and immovable. Money can be converted into any type of asset and all assets can be converted into money.

(d) Helps in consumers’ and producers’ equilibrium: All goods and services are expressed in terms of money. The consumer attains equilibrium when the price of a product is equal to his marginal utility. Similarly, the producers reach equilibrium if they get maximum satisfaction. Both consumers and producers try to achieve equilibrium with the help of money.

IV. Other functions of money: 

(a) Money helps in decision making. 

(b) Helps the Government in collection of taxes and undertaking expenditure. 

(c) The solvency of a person can be determined with the help of money. 

(d)Money helps in determining purchasing power of rich or poor.

The primary functions of money are as follows: 

(a) Medium of Exchange: Money plays an important role as a medium of exchange. It facilitates exchange of goods for money. It has solved the problems of barter system. It helps the people to sell in one place and buy in another place. Money has widened the scope of market transactions. Money has become a circulating material between buyers and sellers.

(b) Measure of Value: The money acts as a common measure of value. The values of all goods and services can be expressed in terms of money. As a measure of value, money performs following functions:

• The value of all goods and services measured and expressed in terms of the money. 
• Rate of exchange of goods and services expressed in money. 
• Facilitates the maintenance of accounts. 
•  It facilitates price mechanism. 
• It makes goods and services comparable in terms of price.

(C) Both A & B

(D) All the above

Bankers reject this cheque. Bankers never give cash to the cheques. The sister should have an account in the branch. Then only she can withdraw the amount.

1. Medium of Exchange 

2. Measure of value

(B) Fixed deposit

Answer is (C) 3

A) no need of guarantee

Answer is (B) Cheques

The age limit to open a savings account is 10 years. 

(B) Current account

(D) All the above

B) Automated Teller Machine

Management Information System (MIS) comprises of Production Information System, Marketing Information System, Accounting Information System, Human Resources Information System, etc.

Information provided by AIS is most important to managers in managing the organisation.

In the following ways, accounting software provide facility for data exchange with other information system :

1. Through internet web browser, any information can be accessed at any time from anywhere. If authorised, such accounting information can be modified, copied or print out can be taken.
2. Accounting information can be uploaded. For example, if information about each sale bill is uploaded for filling VAT, return, filling of return will be very easy.
3. Accounting information can be transferred by e-mail, with such features or facilities, lot of money and time is saved.
4. Accounting information or statements can be exported. For example, Balance Sheet can be exported in Excel Sheet.

Vocabulary: A list of words usually in alphabetical order with their meaning (or) grammar, glossary (or) dictionary.

Accounting Information System (AIS) is a system of processing data relation to financial transactions in such a manner that useful information is made available for internal decisions of the unit as also to outsiders. Accounting Information System (AIS) is a part of Management Information System (MIS). Information provided by AIS is useful to managers in internal decision making. Such information also becomes useful to external parties.

Management Information System (MIS) is a wide system as compared to Accounting Information System (AIS). MIS can comprise of Production Information System, Marketing Information System, Accounting Information System, Human Resources Information System, etc. In short we can say that, MIS provides other informations with accounting information.

From the above discussion, we can state that Accounting, Information System (AIS) makes various useful accounting information available to internal and external users that helps users in decision making.

AIS can provide following reports or statements relating to accounting :

• Profit and Loss statement: From this statement, external parties can get information about profit or loss, i.e., result of business. Directors can get information about profitability of different products or division or department, from this statement.
• Balance Sheet: From this statement, internal ancj external parties can get information about the financial position of the units, i. e., information about the assets and liabilities of the unit.
• Debtors’ report: Such report can give information relating to debtors or customers as per business organisation’s need.
• Creditors’ report: Such report can give information relating to creditors or suppliers as per business organisation’s need.
• Other reports : Business organisation may prepare other reports as per need. For example, Report about information of bank transactions for information to Managing Director.

Accounting Information System (AIS) is a part of Management Information System (MIS).

Narrative: A story or an account of a sequence of events in the order in which they happened, narration, account.

Interpreting: To establish or explain the meaning or significance of something.

1. विदेशी पूँजी पर जो लाभांश चुकाया जाता है वह रकम देश के बाहर चली जाती है ।
2. ऐसी पूँजी से देश देनदार बन जाता है ।
3. देश की धन्धाकीय बातों का रहस्य भी गप्त नहीं रह पाता है ।

Correct option is b. Grading method

Correct option is a. Factor comparison method

Correct option is (c) Accounting Information System

Informative: To communicate information or knowledge to somebody.

LPG stands for Liberalisation, Privatisation and Globalisation

Correct option is a. Performance appraisal

1. IFCI : Industrial Finance Corporation of India अर्थात् भारतीय औद्योगिक वित्त निगम । यह संस्था दीर्घकालीन उधार
   पूँजी प्रदान करनेवाली भारत सरकार की वित्तीय संस्था है ।
2. IDBI : Industrial Development Bank of India अर्थात् भारतीय औद्योगिक विकास बैंक । यह संस्था दीर्घकालीन उधार पूँजी प्रदान करनेवाली बैंक है ।
3. ICICI : Industrial Credit and Investment Corporation of India अर्थात् भारतीय औद्योगिक शान और विनियोग निगम । यह संस्था एक वित्तीय संस्था है, जो कि दीर्घकालीन उधार पूँजी प्रदान करती है ।
4. GSFC : Gujarat State Finance Corporation अर्थात् गुजरात राज्य वित्त निगम । यह संस्था गुजरात सरकार द्वारा स्थापित एक वित्तीय संस्था है, जो कि दीर्घकालीन वित्त प्रदान करती है ।
5. GIIC : Gujarat Industrial Investment Corporation अर्थात् गुजरात औद्योगिक विनियोग निगम । यह संस्था औद्योगिक
   इकाईयों को दीर्घकालीन वित्तीय सुविधा प्रदान करती हैं ।

Correct option is D.Men

• Privatisation signifies the process wherein, the government transfers ownership, management, and control of the public sector enterprises to the private sector entities. 
• Allows the private sector to set up industries in the field earlier reserved for the public sector. 
• Privatisation has substantially reduced the role of the government in economic activities. 
• Privatisation is an allied process that accompanies globalisation. 
• Under the process of privatisation, reducing the involvement of the state in economic activities and increasing the involvement of the private sector are expected. 
• The government has been thereby trying to mobilise resources for improving the efficiency of the remaining public sector units. 
• Under the policy of globalisation, various countries have adopted the process of privatisation.

Globalisation led to increase in production, this in turn has led to large-scale marketisation

Correct option is a. 360° appraisal

Correct option is d. MBO

Error due to imperfection in experimental technique:

• The errors which occur due to defective setting of an instrument is called error due to imperfection in experimental technique.
• For example the measured volume of a liquid in a graduated tube will be inaccurate if the tube is not held vertical.

Privatisation is mainly oriented to profits

The British Prime Minister Clement Attlee declared in the House of Commons of British Parliament on February 20, 1947, that the British would transfer the power to the responsible government of India by June 30, 1948, and if there is an agreement among the political parties of India, the power might be handed over, before the given time also.

There were 20 sections in the Indian Independence Act, 1947 in all.

Against the wish of Indian people, India was involved in World War II. In 1945, the government of Labour Party was formed in Britain. The Labor Party had a positive attitude for India. The British Prime Minister Attlee sent three members of his Cabinet to bring out a proper solution of constitutional and political obstructions.

They proposed to form a federal state in India, to form a constituent assembly, and to establish an interim government. The proposals were accepted by Congress but the demand of separate Pakistan was refused. Muslim League opposed this and initiated direct action, which sparked off communal riots all over the country.

Mountbatten Plan is also known as June 3 Plan or Dickie Bird Plan. On March 24, 1947, Lord Mountbatten came to India as the Viceroy. As soon as he took charge, he started discussions with the leaders of Congress and Muslim League to resolve the then existing problems. On May 18, 1947, Mountbatten went to London to discuss the final solution of the problem with the British Government. After coming back – from London, Mountbatten presented the plan of the partition of India and the transfer of power on June 3, 1947.

Main Points of Mountbatten Plan: 

1. India to be divided into two dominions – India and Pakistan. 

2. Bengal and Punjab would be partitioned and a referendum in North – Western Frontier province and Sylhet district of Assam would be held. 

3. There would be a separate Constituent Assembly for Pakistan to frame its constitution. 

4. The princely states would have the liberty to join either India or Pakistan or to remain independent. 

5. August 15, 1947 was the date fixed for handing over power to India and Pakistan. Hence, we can say that main purpose of the Mountbatten Plan was the execution of partition of India and speedy transfer of responsibilities initially in the form of dominion status to Indian Governments.

On July 26, 1945.

(c)  in 1942

The modern forms of money include currency – paper notes and coins. 

In February 1946, British Prime Minister Attlee sent a group of three members of British cabinet-Lord Pathic Lawrence, Sir Stafford Cripps and A.B. Alexander to India. This group was called the Cabinet Mission. It arrived in India on March 24, 1946 and presented its report on May 16, 1946. The Plan / Recommendations Presented by Cabinet Mission.

1. The Cabinet Mission proposed that there shall be an Indian federation empowered to deal with defense, foreign affairs and transportation. 

2. The Cabinet Mission recommended an undivided India and turned down the Muslim League’s demand for a separate Pakistan. 

3. It provided that all the members of the interim cabinet would be Indians and there would be minimum interference by the Viceroy. 

4. The Cabinet Mission recognized Indian right to cede to the Commonwealth. 

5. It provided that Union Government and its legislature would have absolute powers dealing with finance, foreign affairs and communications. 

6. A Constituent Assembly will be formed of the representatives of the provincial assemblies and the princely states. 

7. The representation of the provincial legislatures was to be divided into three sections: 

Section A—Madras, U.P, Central Provinces, Bombay, Bihar and Orrissa. 

Section B—Punjab, Sindh, North – western Frontier Provinces, Baluchistan. 

Section C—Assam and Bengal.

Modern money

Modern money is anything that widely accepted for a transaction and which has a monetary value. A modern form of money includes paper notes and coins. Other than these two there are many types of money there are e-money, mobile wallet are some types which are as money currently in our economy. Best fit example of new forms of money that is e-money is Paytm which is widely accepted nowadays. New forms of e-money are not accepted in rural areas by the person who has lack of knowledge of the internet. Paper notes and coins accepted everywhere in India because of it the promissory note issued by the RBI. All the modern money have the function of the store of value.

Traditional money

Before the advent of paper notes and coins, people used different types of coins such as gold, silver, copper which was issued by the government and have a seal of the government in it. Before the use of coins, goods such as cattle and grains were used for the transaction purpose by the people. The traditional money had less store of value than modern money. The store of value means the money which we save for our future use; goods cannot be saved since it perishes. Therefore, it lacks the store of value function.

(a) As the debentures are fully convertible, there is no need for creation of Debenture Redemption Reserve.

(b) For the non- convertible parts of debentures, DRR would created as follows:

Amount required to be transferred to DRR (25% of Face value) =20,00,000 x 25% = 1,25,000