Answer:
(i) Money as the Medium of exchange - Refer to Ans. 7 (3 Marks). (ii) Money as a unit of Account - Money is the measuring rod. Values of all goods and services can to expressed in a single common unit called money, (iii) Money as the standard of defened payments - Money is the link which connects the values of today with those of the future. Loans are taken and repaid in terms of money (iv) Money as a store of value - Money can store value of goods in liquid form. Holding money is equivalent to keeping a reserve of liquid assets because it can be easily converted into other things. (v) Liquidity of Money - Money is the most generally accepted commodity, it is also the most liquid of all resources. Possession of money enables one to get hold of almost any commodity in anyplace and money never locks a buyer.
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