Question

Define money. Explain the contingent functions of money.

Medium

Solution

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Money is any good that is widely used and accepted in transactions involving the transfer of goods and services from one person to another. 
Functions of money:
(i) Act as a medium of exchange.
(ii) Act as a legal tender for repayment of debt.
(iii) As a standard of value.
(iv) As a unit of accounting measure.
(v) As a means to save or store purchasing power.

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