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Zorluk: ZorMeaning, Functions, and Characteristics of Money

A wholesaler in Onitsha buys 500 bags of rice on credit, contracting to settle the debt with a fixed sum in three months. Simultaneously, the wholesaler lists the selling price of each bag in naira on a price tag to allow customers to compare values easily. Which combination of money functions is illustrated by the wholesaler's actions?

  1. Standard of deferred payment and unit of accountCevap
  2. B
    Medium of exchange and store of value
  3. C
    Store of value and standard of deferred payment
  4. D
    Medium of exchange and unit of account

Cevap

Standard of deferred payment and unit of account
The correct answer accurately pairs the two distinct functions shown in the scenario. Entering into a contract to pay for goods at a later date utilizes money as a standard of deferred payment. Displaying goods with prices expressed in monetary units enables customers to assess relative worth, which demonstrates money's role as a unit of account.

Adım Adım Çözüm

1
Analyze the first action: purchasing on credit with an agreement to settle a fixed sum in three months.
Identified as a secondary function of money enabling credit transactions and future debt settlement.
Money serves as a standard of deferred payment when it allows obligations to be incurred now and paid in the future.
2
Analyze the second action: listing prices on tags in currency terms to facilitate value comparison.
Identified as a primary function of money acting as a common denominator for measuring value.
Money acts as a unit of account (or measure of value) when goods and services are priced in monetary terms.
3
Combine the identified functions to select the matching option pair.
The correct combination is standard of deferred payment and unit of account.
Both identified functions accurately correspond to the two actions in the scenario.

Anahtar Kavram

Functions of Money (Primary vs. Secondary)
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Konular

Meaning, Functions, and Characteristics of Money

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