Choose that the given statement is true/false:

The property of money that acts as an intermediary in a transaction is referred to as the standard of deferred payment.

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True

False

answer is B.

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Detailed Solution

The above statement is false.
Money makes it easy to purchase goods of our choice with the amount earned by selling our goods or rendering our services. One of the other features of money is the standard of deferred payment. It means that money can be used to make payments for transactions afterwards, but it is impossible to find a commodity with the same quality to make payments in the future. In addition, it is not confirmed whether the other party that is involved in the transaction will need the goods in the future or not.
The correct statement should be that the property of money to act as an intermediary in a transaction is termed the "medium of exchange."

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