Home › Bihar Board Class 12 (Arts) › Economics › Money and Banking › What is the principal role of money in an economy?
What is the principal role of money in an economy?
AStoring precious metals
BFacilitating exchange of goods
CFixing the bank rate
DReducing the fiscal deficit
Answer & Solution
Correct answer: B. Facilitating exchange of goods
Money was introduced as an intermediate good acceptable to both parties so that exchanges become smooth.
Related questions
How many major commercial banks did India nationalise in 1969?The Reserve Bank of India was nationalised in which year?Interbank deposits are excluded from money supply because only deposits of theWhich measures are called narrow money?M3 equals M1 plusWhich of these is the narrowest RBI measure of money?Money supply is aFixed deposits are an example of