Macro

Money & Banking

Medium

Among the following, which are the functions of money?

(A) Medium of exchange.

(B) Unit of account.

(C) Bartering

(D) Store of value

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

✅ Correct Option: 1

Option 1 -> Correctly identifies the three main functions of money: medium of exchange, unit of account, and store of value.

Option 2 -> Incorrectly includes bartering, which is not a function of money but rather a system that existed before money.

Option 3 -> Incorrectly includes bartering along with the actual functions of money.

Option 4 -> Excludes medium of exchange (which is a primary function) and incorrectly includes bartering.

Hence, Option 1: (A), (B) and (D) only -> Money serves three primary functions: (A) Medium of exchange - facilitates buying and selling of goods and services; (B) Unit of account - provides a common measure of value for pricing; (D) Store of value - allows wealth to be saved for future use. Bartering (C) is the direct exchange of goods/services without money, representing a pre-money economic system, not a function of money itself. -> correct

2025: 3 June Shift 1

If the central bank wants to reduce the money supply in the economy, what it may do from the following?

(A) Increase bank rate.

(B) Reduce cash reserve ratio.

(D) Buy securities in the open market.

Choose the correct answer from the options given below:

2026: 21 May Shift 1

Which of the following are correct about money measures?

(A) M1 = CU + DD

(B) M2 = M1 + Savings deposits with commercial banks

(D) M4 = M3 + Total deposits with Post Office savings organisations (excluding National Savings Certificates)

Choose the correct answer from the options given below:

2025: 29 May Shift 2

Match List-I with List-II

List-I	List-II
(A) $M_1$	(I) $M_1$ + Net time deposits of commercial banks
(B) $M_3$	(II) Assets - Liabilities
(C) Net Worth	(III) 1/CRR
(D) Money Multiplier	(IV) Currency + Demand Deposit

Choose the correct answer from the options given below:

2025: 16 May Shift 1

What was the negative impact of demonetization?

2025: 29 May Shift 1

If the reserve ratio is 20%, what is the money multiplier?

2026: 6 June Shift 1

Which of the following is the quantitative tool of money supply used by Central Bank?

Among the following, which are the functions of money? (A) Medium of exchange. (B) Unit of account. (C) Bartering (D) Store of value Choose the correct answer from the options given below:

Solution

Related questions:

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CUET Economics Past Year Questions (Topic-Wise)

Among the following, which are the functions of money?

(A) Medium of exchange.

(B) Unit of account.

(C) Bartering

(D) Store of value

Choose the correct answer from the options given below: