Question
What is ‘barter’? Explain ‘standard of deferred payment’ function of money.

Answer

A barter system is an old method of exchange. This system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return.Standard of Deferred Payment:
Deferred payments mean those payments which are to be made in the future. If a loan is taken today, it would be paid back after a period of time.
The amount of loan is measured in terms of money and it is paid back in money. A large number of credit transactions involving huge future payments are made daily. Money performs this function of standard for deferred payments because its value remains more or less stable.

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