CBSE 2014 Class 12 Economics Outside Delhi Set-1

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Question : 8
Total: 19
Explain the significance of the 'Standard of Deferred Payment' function of money.
Solution:  
Standard of Deferred Payment: Money payments can be made after a lapse of time. In the barter economy lending and borrowing took place in terms of goods. But most of goods deteriorate in value over time. Money, however has stable value overtime and therefore it facilitates lending and borrowing making such activities less risky.
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