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

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.

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.