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Which of the following is True with reference to money
(i) It acts as medium of exchange.
(ii) It includes paper notes, coins and demand deposits
  • a)
    Both (i) and (ii) are true
  • b)
    (i) is true (ii) is false
  • c)
    Both (i) and (ii) are false
  • d)
    (ii) is true (i) is false
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
Which of the following is True with reference to money(i) It acts as m...
Money acts as a medium of exchange.

For example - we gave money to shopkeeper and in return they gave us food items, clothes, etc .

Money are printed in form of paper notes and coins and also in DD.

Therefore, option A) is correct answer.
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Community Answer
Which of the following is True with reference to money(i) It acts as m...
The main function of money is to act as a medium of exchange. It facilitates exchange through a common medium i.e. facilitates exchange through currency and eliminates the need for double coincidence of wants for an exchange to take place. Therefore, it can be concluded that medium of exchange is the primary function of money.
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Read the extract given below and answer the questions that follows:Bartering is the act of trading one good or service for another without using a medium of exchange such as money. A bartering economy differs from a monetary economy in a variety of ways. When barter was used as an exchange medium, the needs of people were very limited. This trading method doesn’t involve money and it relies solely on exchanging goods and services for other services and goods in return. The use of money spans a very large part of our everyday life. To understand the usefulness of money, we must consider what the world would be like without money. How would people exchange goods and services? Economies without money typically engage in the barter system. Barter is highly inefficient for trying to coordinate the trades in a modern advanced economy. In an economy without money, an exchange between two people would involve a double coincidence of wants, a situation in which both the parties have to agree to sell and buy each other’s commodities. This is known as double coincidence of wants. What a person desires to sell is exactly what the other wishes to buy. In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. Another problem with the barter system is that it does not allow us to easily enter into future contracts for purchasing many goods and services. Money solves the problems that the barter system creates. Money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Modern forms of money include currency — paper notes and coins. The other form in which people hold money is as deposits with banks.Answer the following MCQs by choosing the most appropriate optionQ. In a barter system

Read the extract given below and answer the questions that follows:Bartering is the act of trading one good or service for another without using a medium of exchange such as money. A bartering economy differs from a monetary economy in a variety of ways. When barter was used as an exchange medium, the needs of people were very limited. This trading method doesn’t involve money and it relies solely on exchanging goods and services for other services and goods in return. The use of money spans a very large part of our everyday life. To understand the usefulness of money, we must consider what the world would be like without money. How would people exchange goods and services? Economies without money typically engage in the barter system. Barter is highly inefficient for trying to coordinate the trades in a modern advanced economy. In an economy without money, an exchange between two people would involve a double coincidence of wants, a situation in which both the parties have to agree to sell and buy each other’s commodities. This is known as double coincidence of wants. What a person desires to sell is exactly what the other wishes to buy. In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. Another problem with the barter system is that it does not allow us to easily enter into future contracts for purchasing many goods and services. Money solves the problems that the barter system creates. Money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Modern forms of money include currency — paper notes and coins. The other form in which people hold money is as deposits with banks.Answer the following MCQs by choosing the most appropriate optionQ. Which of the following features of money acts as an intermediate in the exchange process?

Read the extract given below and answer the questions that follows:Bartering is the act of trading one good or service for another without using a medium of exchange such as money. A bartering economy differs from a monetary economy in a variety of ways. When barter was used as an exchange medium, the needs of people were very limited. This trading method doesn’t involve money and it relies solely on exchanging goods and services for other services and goods in return. The use of money spans a very large part of our everyday life. To understand the usefulness of money, we must consider what the world would be like without money. How would people exchange goods and services? Economies without money typically engage in the barter system. Barter is highly inefficient for trying to coordinate the trades in a modern advanced economy. In an economy without money, an exchange between two people would involve a double coincidence of wants, a situation in which both the parties have to agree to sell and buy each other’s commodities. This is known as double coincidence of wants. What a person desires to sell is exactly what the other wishes to buy. In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. Another problem with the barter system is that it does not allow us to easily enter into future contracts for purchasing many goods and services. Money solves the problems that the barter system creates. Money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Modern forms of money include currency — paper notes and coins. The other form in which people hold money is as deposits with banks.Answer the following MCQs by choosing the most appropriate optionQ. Which of the following has an essential feature of double coincidence?

Read the extract given below and answer the questions that follows:Bartering is the act of trading one good or service for another without using a medium of exchange such as money. A bartering economy differs from a monetary economy in a variety of ways. When barter was used as an exchange medium, the needs of people were very limited. This trading method doesn’t involve money and it relies solely on exchanging goods and services for other services and goods in return. The use of money spans a very large part of our everyday life. To understand the usefulness of money, we must consider what the world would be like without money. How would people exchange goods and services? Economies without money typically engage in the barter system. Barter is highly inefficient for trying to coordinate the trades in a modern advanced economy. In an economy without money, an exchange between two people would involve a double coincidence of wants, a situation in which both the parties have to agree to sell and buy each other’s commodities. This is known as double coincidence of wants. What a person desires to sell is exactly what the other wishes to buy. In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. Another problem with the barter system is that it does not allow us to easily enter into future contracts for purchasing many goods and services. Money solves the problems that the barter system creates. Money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Modern forms of money include currency — paper notes and coins. The other form in which people hold money is as deposits with banks.Answer the following MCQs by choosing the most appropriate optionQ. Which of the following can be considered a modern form of Money?

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Which of the following is True with reference to money(i) It acts as medium of exchange.(ii) It includes paper notes, coins and demand depositsa)Both (i) and (ii) are trueb)(i) is true (ii) is falsec)Both (i) and (ii) are falsed)(ii) is true (i) is falseCorrect answer is option 'A'. Can you explain this answer?
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Which of the following is True with reference to money(i) It acts as medium of exchange.(ii) It includes paper notes, coins and demand depositsa)Both (i) and (ii) are trueb)(i) is true (ii) is falsec)Both (i) and (ii) are falsed)(ii) is true (i) is falseCorrect answer is option 'A'. Can you explain this answer? for Class 10 2024 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Which of the following is True with reference to money(i) It acts as medium of exchange.(ii) It includes paper notes, coins and demand depositsa)Both (i) and (ii) are trueb)(i) is true (ii) is falsec)Both (i) and (ii) are falsed)(ii) is true (i) is falseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 10 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is True with reference to money(i) It acts as medium of exchange.(ii) It includes paper notes, coins and demand depositsa)Both (i) and (ii) are trueb)(i) is true (ii) is falsec)Both (i) and (ii) are falsed)(ii) is true (i) is falseCorrect answer is option 'A'. Can you explain this answer?.
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