Question 29
Money and InflationBecause money serves as a standard for deferred payments
- A.it serves as a store of value
- B.goods can be bought on credit with pre-determined value
- C.future trade becomes possible
- D.it serves as a unit of account
- E.it becomes valuable.
Show the answer and explanation
Answer: B (goods can be bought on credit with pre-determined value)
Explanation
As a standard of deferred payment, money lets people agree today on a sum to be paid later, which makes credit buying possible.