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JAMB Economics 1981 Question 12

Question 12

Money and Inflation

The function of money as a standard of deferred payments

  1. A.makes it possible for an individual to build up stores of many things for future use
  2. B.makes it possible for payments to be postponed from the present to a future date
  3. C.facilitates the exchange of goods
  4. D.makes easy calculations possible
  5. E.none of the above.
Show the answer and explanation

Answer: B (makes it possible for payments to be postponed from the present to a future date)

Explanation

As a standard of deferred payment, money lets debts be settled at a future date, e.g. buying on credit.