Question

Money serves as a measure of standard of deferred payments.

Hint:

The money's role in deferred payments helps in credit-based economic activities.

Answer 1

Understanding Deferred Payments: Deferred payments refer to payments that are agreed to be made at a future date, such as loan repayments or installment-based purchases. 
Justification: 
- Money acts as a reliable standard for future payments, as its value remains relatively stable over time. 
- It eliminates complications that arise in barter systems, where goods may fluctuate in value, making future transactions uncertain. 
- Money allows for credit-based transactions, facilitating economic growth by enabling investments and consumer spending. 
Conclusion: 
Thus, money serves as a standard for deferred payments by ensuring fairness, stability, and convenience in future transactions.