Question

Explain Standard of deferred payments function of money.

Answer 1

1. Credit has become the life and blood of a modem capitalist economy.

2. In millions of transactions, instant payments are not made.

3. The debtors make a promise that they will make payments on some future date. In those situations money acts as a standard of deferred payments.

4. It has become possible because money has general acceptability, its value is stable, it is durable and homogeneous.