Question

Money leads to?

a higher standard of living, but not to greater specialization.

greater specialization in production, but not to a higher standard of living.

greater specialization and to a higher standard of living.

neither greater specialization nor to a higher standard of living.

Answer 1

In simple words, Money can be defined as anything that people use to buy goods and services. Money is what many people receive for selling their own things or services. Most countries have their own kind of money, such as the United States dollar or the British pound. Money is also called many other names, like currency or cash. Money plays an important role by performing the following four functions.

Medium of exchange

Store of value.

Unit of account and

Standard if deferred payments.

The correct option is (c).

greater specialization and to a higher standard of living.

It is an admitted fact that money leads to greater specialisation and also a higher standard of living.

Hope you got the answer.

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