--%>
Assignment Help - homework help

What are the Functions of money

Explain in short the functions of money?

Answer:

(A) Medium of exchange: Money can be employed to make payments for all transactions of services and goods.

(B) Measure of value: Money works as a general denomination in which the values of all services and goods are expressed.

(C) Store of value: Wealth can be suitably stored in the form of money without loss of value.

(D) Standard of deferred payments: Money simplifies the borrowing and lending process.

   Related Questions in Business Economics

  • Q : Describe unequal burdens of

    Describe unequal burdens of unemployment exist?

    		•
  • Q : Firms operating under Cournot

    Question: Suppose three identical firms are engaged in Cournot competition in quantities. They all have marginal costs equal to 40. Market demand is given by:

    Q : Problem on opportunity cost buying a

    After agonizing regarding whether to buy a hot dog or a hamburger along with his last dollar while he goes to the fair, Jeeter at last chooses the hot dog. The hamburger shows Jeeter's: (i) normative choice, because it would be more nutritious. (ii) opportunity cost o

    		•
  • Q : Exploit consumers in highly competitive

    This is difficult for firms within highly competitive markets to exploit consumers since: (i) consumer advocates organize boycotts that generate bad publicity. (ii) market pressures force fair distributions of products. (iii) the government sets price

    		•
  • Q : Illustrate Economics for citizenship

    Illustrate Economics for citizenship?

    		•
  • Q : Free rider problem Question: Explain

    Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good. Answer:

    		•
  • Q : Use of human and material resources

    What are the merits of speciality in the use of human and material resources?

    		•
  • Q : Why is speculation unlike arbitrage

    Speculation is unlike arbitrage since: (1) speculative buyers always break even. (2) speculation causes increased costs. (3) speculators bear no risk. (4) positive returns for speculators are not sure. (5) competitive speculation equa

    		•
  • Q : Reduce price differences by arbitrage

    When government intervention is not present, than arbitrage: (w) will reduce price differences when similar good sells at various prices within separate markets. (x) results into economic losses for traders. (y) causes high economic profits for mercha

    		•
  • Q : Why does the supply curve slope upward

    Explain the law of supply. Why does the supply curve slope upward?

    		•