State whether the following statement is True or False.
Credit Money can be refused.
State whether the following statement is True or False.
Credit Money can be refused.
The correct option is A True
Money serves as the
standard of deferred payment. Deferred payments refer to payments made on
loans, salaries, pensions, insurance premium, interests, and rents. The
necessary condition for deferred or credit payment is that the amount of repaid
money should be the same as it was at the time of purchase of the good. Since
all the goods and services can be expressed in terms of money, it makes the
future payments easy and functional which makes money the basis for generating
credit in the economy. But sometimes credit money can be refused owing to the
natural appreciation or depreciation of commodities with time due to which
their monetary value at the time of deal does not match with their monetary
value at the time of payment.
Money serves as the standard of deferred payment. Deferred payments refer to payments made on loans, salaries, pensions, insurance premium, interests, and rents. The necessary condition for deferred or credit payment is that the amount of repaid money should be the same as it was at the time of purchase of the good. Since all the goods and services can be expressed in terms of money, it makes the future payments easy and functional which makes money the basis for generating credit in the economy. But sometimes credit money can be refused owing to the natural appreciation or depreciation of commodities with time due to which their monetary value at the time of deal does not match with their monetary value at the time of payment.
