Justify the following statements with valid arguments: Money serves as a ‘store of value’ in an economy. The Central Bank acts as ‘Government’s Bank’ in an economy. (a) Money serves as a ‘store of value’ in an economy.

Question

Match List-I with List-II \[\begin{array}{|c|c|} \hline \textbf{Types of Production Functions} & \textbf{Their Functional Forms} \\ \hline \text{(A) Translog Production Function} & \text{(I) \( q = \prod_{i=1}^{n} x_i^{a_i} \)} \\ \hline \text{(B) Generalised Leontief Production Function} & \text{(II) \( q = \sum_{i=1}^{n} a_i x_i^{\rho}, \ \rho \leq 1 \)} \\ \hline \text{(C) Cobb Douglas Production Function} & \text{(III) \( q = \sum_{i=1}^{n} a_{ij} x_i x_j \), where \( a_{ij} = a_{ji} \)} \\ \hline \text{(D) Constant Elasticity of Substitution Production Function} & \text{(IV) \( q = a_0 + \sum_{i=1}^{n} a_i \ln x_i + 0.5 \sum_{i=1}^n \ln x_i \)} \\ \hline \end{array}\] Choose the correct answer from the options given below:

Answer 1

Money's durability contrasts with the perishability of goods in barter, enabling future savings. It functions as a stable store of value, supporting long-term financial planning and investment.

Justify the following statements with valid arguments: Money serves as a ‘store of value’ in an economy. The Central Bank acts as ‘Government’s Bank’ in an economy. (a) Money serves as a ‘store of value’ in an economy.

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