alleryWhich item is generally accepted as payment for goods and debts?
- Money
- Shares
- Bonds
- Cheques
Show answer and solution
Correct answer: A. Money
Money serves as the universally accepted medium of payment and debt settlement.
ICSE Class 10 Money, Banking & Inflation — practice questions
Explore 144 free Money, Banking & Inflation questions in ICSE Class 10 Economics. Open each question or exercise to read its content, reference answers and available explanation.
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Showing questions 1–30 of 144.
Which item is generally accepted as payment for goods and debts?Read the answer and worked solution →Which function of money solves the barter problem of wants?Read the answer and worked solution →Which function of money provides a common measure of economic value?Read the answer and worked solution →Which function allows purchasing power to be saved and retrieved?Read the answer and worked solution →Which function of money enables individuals to buy now and pay later?Read the answer and worked solution →Which money property means individual units can substitute each other?Read the answer and worked solution →What property of money ensures that it can withstand repeated use?Read the answer and worked solution →What property of money allows it to be easily carried and transported?Read the answer and worked solution →Why is money considered the most liquid asset in an economy?Read the answer and worked solution →What type of money has value derived solely by government decree?Read the answer and worked solution →What happens to the purchasing power of money during price inflation?Read the answer and worked solution →What economic term denotes a persistent fall in the general price level?Read the answer and worked solution →What term describes high inflation paired with high unemployment?Read the answer and worked solution →When does demand-pull inflation emerge in an economy?Read the answer and worked solution →Which type of inflation explains how price inflation typically starts?Read the answer and worked solution →Which fiscal factor directly contributes to demand-pull inflation?Read the answer and worked solution →Which monetary development causes demand-pull inflation?Read the answer and worked solution →What primary condition triggers cost-push inflation in an economy?Read the answer and worked solution →Why do businesses increase their output prices during cost-push inflation?Read the answer and worked solution →Which historical event serves as an example of cost-push inflation?Read the answer and worked solution →How can expected inflation directly induce cost-push inflation?Read the answer and worked solution →How does unexpected inflation affect borrowers with fixed nominal rates?Read the answer and worked solution →Who suffers the largest loss of purchasing power during high inflation?Read the answer and worked solution →How does uncertainty over future inflation affect investment and saving?Read the answer and worked solution →What institution accepts deposits from the public and issues loans?Read the answer and worked solution →Which deposit account allows customer withdrawals on demand?Read the answer and worked solution →When a bank account balance is overdrawn, who owes money?Read the answer and worked solution →Up to what ceiling will a bank clear customer checks?Read the answer and worked solution →Which bank account holds customer assets for a third party?Read the answer and worked solution →In which role do commercial banks collect and clear checks?Read the answer and worked solution →
Worked practice questions
Which function of money solves the barter problem of wants?
- Store of value
- Unit of account
- Medium of exchange
- Deferred payment
Show answer and solution
Correct answer: C. Medium of exchange
A medium of exchange eliminates the need for a double coincidence of wants.
Which function of money provides a common measure of economic value?
- Store of value
- Unit of account
- Medium of trade
- Standard of debt
Show answer and solution
Correct answer: B. Unit of account
Acting as a unit of account provides a standard numerical measure for pricing goods.
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