Question

Explain the 'standard of deferred payment' function of money.

Answer 1

Money, besides being the basis of current transactions, is also the basis of deferred payments, i.e. future payments. Accounts of deferred payments can be maintained only with the use of money, in such a way so that both creditors and debtors do not stand to lose anything. Money fosters easy borrowing and lending and raises the availability of credit.