What Is Money

Q.

Briefly describe the stages in the evolution of money.

Q.

What is the comparative and superlative degree of thin?

Q.

What is the difference between money and currency?

Q.

Explain the problem of double coincidence of wants faced under barter system and how has money solved it.

Q.

Distinguish between money value of money and commodity value of money.

Q.

Explain any two functions of money.

Q.

Explain what you understand by representative money.

Q.

What is the barter system? Explain any one limitation in detail.

OR

What is money? Explain any one function in detail.

Q.

Why are transactions made in money?

Q.

Which of the following is a commonly accepted definition of money?

1. Any good which is commonly used as a store of value

2. Any good which is exchanged for gold at a fixed rate

3. Any good which is acceptable to a bank

4. Any good which is commonly accepted as a medium of exchange

Q. What are the basic characteristics of money?

Q.

State any two characteristics of money.

Q. Medium of exchange is a primary function of money.

1. True
2. False

Q. Medium of exchange is one of the ___________ function of money.

1. primary
2. secondary
3. contingent
4. additional

Q. Match the following:

Group A	Group B
1. Near Money	a. Sea Shells
2. Secondary function of money	b. Double coincidence of wants
3. Commodity Money	c. Fiat money
4. Barter	d. Measure of value
5. Legal tender	e. Bills of exchange
	f. Standard of deferred payments
	g. Metallic money

Q.

Read the following dialogue between Neeta and Sita:

Neeta: I want to shift to Singapore. What do I do with my house?

Sita: I can give you '10 antique pieces' for it.

Neeta: But, I do not need antique pieces.

Sita: Then, let the house remain where it is.

Which of the following problems is being faced by Neeta and Sita in their exchange process?

(a) Lack of medium of exchange

(b) Lack of transfer of value

(c) Lack of store of value

(d) Lack of standard for deferred payment

Q. ________ is an asset which serves as a unit of value, medium of exchange, standard of deferred payment and store of value.

1. Money
2. Rupee
3. Monetary unit
4. Currency

Q. Indian paper money currency is convertible.

1. True
2. False

Q.

Which of the following can be some kind of money?

1. All of the above

2. Cigarettes

3. Clothes

4. Cows

Q. Currency is accepted as a medium of exchange because __________.

1. it is easy to carry
2. paper doesn't cost more to be printed in the form of currency
3. is authorised by the government of the country
4. none of the above

Q. Distinguish between Legal Tender Money and Credit Money or Bank Money/Optional Money.

Q. Read the following dialogue between two people:
Sita : I want 1 kg of potatoes
Rani : What will you give in exchange?
Sita : I can give you 2 litres of milk in return for the potatoes.
Rani : I don't need milk. I want a pair of shoe

1. Lack of double coincidence of wants
2. Absence of common units of value
3. Lack of store of value
4. Lack of standard of deferred payment

Q. Write Short Notes on Primary functions of money.

Q. In India, paper currency is known as __________.

1. optional money
2. cumulative money
3. legal tender money
4. tender money

Q. Why is modern currency accepted as a medium of exchange without any use of its own ? Find out the reason.

Q. We accept paper money as a medium of exchange because ______________________.

1. it has gold backing.
2. the law legalizes it.
3. everyone else accepts it.
4. Reserve Bank of India has precious metals against which it prints notes.

Q. Explain the functions of money.

Q. How does money act as a medium of exchange?

Q. Which of the following is a primary function of money?

1. The store of value function.
2. The medium of exchange function.
3. The unit of account function.
4. The saving function.

Q. State with reasons whether you agree or disagree with the following statement.
Money performs various functions.