Money and Banking

Question 1

money is defined as anything which is accepted as a ______ which has ______

Answer 1

medium of exchange, measure of value

Question 2

a system of transaction in which goods are exchanged for goods

Answer 2

barter system

Question 3

_____type of payments are made in future on the basis of contract or agreement between 2 parties. give examples.

Answer 3

deferred payments, eg: rent, wages, credit purchases

Question 4

______was a major problem under barter system

Answer 4

double coincidence of wants

Question 5

meeting the demands of 2 parties at the same time is referred as _________

Answer 5

double coincidence of wants

Question 6

fiat money is the money that has less ____value and more ____value

Answer 6

intrinsic, face

Question 7

legal tender money is anything which is declared as money by the _____

Answer 7

legal authority (central bank)

Question 8

the primary functions of money are

Answer 8

medium of exchange and measure of value

Question 9

_______ function of money has overcome the problem of double coincidence of wants

Answer 9

medium of exchange

Question 10

______facilitated the transaction of commodity at any time

Answer 10

money