Justify the following statements with valid arguments: The Central Bank is the sole currency issuing authority of an economy. Money serves as a…

(a) The Central Bank has the sole authority for issuing currency in the economy. This ensures uniformity in the issue of currency and it gives the Central Bank control over the money supply in the economy. (b) Deferred payments are contracted to be made at some future date. Money facilitates such transactions of borrowing and lending. Hence, money serves as a standard of deferred payments.

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Economics · 2024 · 4 marks

Money and Banking Demand for Money and Supply of Money 4 marks Understand short answer

CBSE 2024 · Region 1 · Set 1 · Q14

Justify the following statements with valid arguments :
(a)
The Central Bank is the sole currency issuing authority of an economy.
(b)
Money serves as a measure of standard of deferred payments.

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Justify the following statements with valid arguments :
(a)
The Central Bank is the sole currency issuing authority of an economy.
(b)
Money serves as a measure of standard of deferred payments.

Marking-scheme solution

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Justify the following statements with valid arguments :(a)The Central Bank is the sole currency issuing authority of an economy.(b)Money serves as a measure of standard of deferred payments.

Marking-scheme solution

More from Money and Banking

Justify the following statements with valid arguments :
(a)
The Central Bank is the sole currency issuing authority of an economy.
(b)
Money serves as a measure of standard of deferred payments.