Question : Which of the following is not a function of money?
Option 1: Store of value
Option 2: Unit of account
Option 3: Medium of exchange
Option 4: Interest rate control
Correct Answer: Interest rate control
Solution : The correct answer is (d). Interest rate control
Interest rate control is not a direct function of money. It is a function of monetary policy, which is implemented by central banks to regulate the money supply and influence interest rates in the economy. While money and monetary policy are closely related, interest rate control is a policy tool used by central banks to manage inflation, stabilize the economy, and promote growth. The primary functions of money are as a medium of exchange, a unit of account, and a store of value.
Question : This function of money has led to the creation of financial institutions.
Option 1: Medium of exchange
Option 2: Measure of value (Unit of value)
Option 3: Store of value
Option 4: Standard of deferred payment.
Question : This function of money has simplified the borrowing and lending operations.
Question : It is possible to derive the value of the Gross Domestic Product (GDP) of a country. Which function of money is applicable here?
Option 3: Standard of deferred payments
Option 4: Medium of exchange
Question : It was difficult to use goods as a store of wealth due to perishable nature of some goods and high cost of storage. Which function of money has solved this problem.
Question : This function provides security to individuals to meet contingencies, unpredictable emergencies and to pay future debts.
Option 4: Standard of deferred payment
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