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Question

Explain the functions of money.

Solution
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The main functions of money are:-

1. Primary function: It is a unit of value which is a medium of exchange.
2. Secondary functions: It is used to make future payments, store of value and transfer of values.
3. Contingent Functions: It is a liquidity which distributes our national income and gives maximum satisfaction to consumers and producers. It also acts as a credit note.

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