Question

Which of the following is a contingent function of money?

• A. Transfer of value
• B. Medium of exchange
• C. Assisting consumption decisions
• D. Standard of deferred payment

Answer 1

The correct option is C

Assisting consumption decisions

The functions performed by money in assisting various economic agents such as consumers, producers, etc., in making economic decisions are called contingent functions of money. The money income of the consumer and the money-prices of the commodities influence the consumption decisions of different individuals.