Write Short Notes.
2) Secondary function of money
Answer: The secondary functions of money are as follows:
i. Standard of deferred payments: Payments can be easily made through the medium of money. In other words, it is very difficult to pay back a loan in terms of goods and services. However, with the advent of money, the payment of loans or interests can be made easily.
ii. Store of value: Store of value function of money implies that money can be easily stored in the form of wealth and can be stored, used as a medium of exchange in the future.
iii. Transfer of value: Money can be transferred easily from one place to another and from one person to another. Therefore, with the help of money, purchasing power can be transferred.
