PRC-3 · Chapter 17 · Question 17 of 20
When a company signs a contract today to buy supplies but promises to pay Rs. 1 million in exactly six months, money is performing its function as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Standard of deferred payment
Explanation
Money allows contracts and debts to be negotiated now and settled in the future, acting as a standard for deferred payments.
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