CBSE 2016 Class 12 Economics Outside Delhi Set-1

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Question : 12
Total: 19
Explain the 'standard of deferred payment' function of money. How has it solved the related problem created by barter?
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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