Question

Money increases productivity of capital.

• A. True
• B. False

Answer 1

The correct option is A True

Money refers to a common medium of exchange that is issued under the law of government and acts as a legal tender for the whole country. Money serves as a store of value where it refers to the function of money that helps individuals in storing their wealth in the form of money. Therefore, money acts as an asset that sustains value over a period of time. So through this function of money, the capital can be easily be stored and invested there up on which increases its productivity overtime.