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</html>";s:4:"text";s:5419:"<p>3. Money as a standard of deferred payments has simplified the borrowing and lending operations. 2. These four functions of money can be expressed with the help of the following couplet: A medium, a measure, a standard and a store. Disclaimer Money helps in calculating relative prices of goods and services. Double coincidence of wants means one person should be able to accept what other person is willing to give in exchange. Store of Value 4. </p> <p>Because of perfect liquidity, money acts a store of value. </p> <p>Through money, value can be easily and quickly transferred from one place to another because money is acceptable everywhere and to all. Your email address will not be published. Copyright. Plagiarism Prevention 4. 2. National income is also expressed in terms of money. It was virtually impossible to store surplus value under barter economy; the discovery of money has removed this difficulty. Use of money allows purchase and sale to be conducted independently of one another. By acting as a store of value, money provides security to the individuals  to meet unpredictable emergencies and to pay debts that are fixed in terms of  money. Money as store of value has the following advantages: 1. (c) Contingent functions which include distribution of national  income, maximization of satisfaction, basis of credit system, etc. Money held’s in the form of cash is considered highly liquid assets. Money also functions as a suitable unit of account. </p> <p>Now the value of various goods and services are expressed in terms of money such as Rs. </p> <p>Money serves as a common measure of value in terms of which the value of all  goods and services is measured and expressed. </p> <p>Money also functions as a unit of account, providing a common measure of the value of goods and services being exchanged. Meaning of Money (D2007, 09; A2004. Money helps in the distribution of national product  through the system of wage, rent, interest and profit. But, money can be easily stored for future use. In fact, all forms of wealth  (e.g., land, machinery, stocks, stores, etc.) The following points highlight the top four functions of money. 4. </p> <p>Store of value. Most of the goods are perishable and their storage requires huge space and transportation cost. Borrower may not be able to arrange goods of exactly the same quality at the time of repayment. But, money is the measuring rod which expresses the value of other commodities. </p> <p>It has separated the acts of sale and purchase. Money effectively eliminates the double coincidence of wants problem by serving as a medium of exchange that is accepted in all transactions, by all parties, regardless of whether they desire each others' goods and services. It is tough to carry forward one’s opulence under the barter system. (d) It allows freedom of choice in the sense that a person can use his money  to buy the things he wants most, from the people who offer the best bargain and  at a time he considers the most advantageous. That is why Prof. Walker has said that money is that which money does. 2. A medium, a measure, a standard and a store. These refer to those functions of money which are supplementary to the primary functions. The value of all commodities and services can be expressed in monetary terms. Money may not even be the best store of value because it depreciates with inflation. Normally, the value of money,  i.e., its purchasing power, does not remain constant; it rises during  periods of falling prices and falls during periods of rising prices. Money, besides being the basis of current transactions, is also the basis of deferred payments. (b) It promotes transactional efficiency in exchange by facilitating the  multiple exchange of goods and services with minimum effort and time. Money has the quality of general acceptability So, all exchanges take place in terms of money. Saving in money is not only secure but its possibility of being destroyed is very less. Money: Meaning and Functions of Money – Discussed! </p> <p>Legal tender means that money is a lawful payment that someone offers to meet a financial obligation. If we go back to the days of the barter system we will then find ½ n (n – 1) separate exchange rates: Further, since the value of all commodities is expressed in terms of money, one can compare the values of commodities. Bank money can be treated as money simply on the basis of their general acceptability for they are highly useful. To know more, stay tuned to BYJU’S. © 2020 Houghton Mifflin Harcourt. Unit of account. It has also led to the creation of financial institutions. Money helps in calculating relative prices of goods and services. Money is a legal tender payment offered in exchange for goods and services. Money, by performing the function of common measure of value, has saved the society from this difficulty. Money is available in fractional denomination, ranging from Rs 1 to Rs 1,000. 5. </p> <p>10 per metre, Rs. Previous Legal tender means that money is a lawful payment that someone offers to meet a financial obligation. </p> <p>Welcome to EconomicsDiscussion.net! For instance, ‘Rupee’ is the unit of account in India, ‘Pound’ in England and so on. Money has no power to satisfy human wants, but it commands power to purchase those things, which have utility to satisfy human wants. Money also serves as a store of value. </p>";s:7:"keyword";s:18:"functions of money";s:5:"links";s:6409:"<a href='http://newdestinychurchpc.com/blog/article.php?tag=is-dirty-dancing-on-netflix-2020-6bb478'>Is Dirty Dancing On Netflix 2020</a>,
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