Final answer:
The term 'standard of deferred payment' refers to an agreed-upon measure for settling debts in the future, enabling the use of money for future payments and financial agreements.
Step-by-step explanation:
The best definition of the term standard of deferred payment is B. An agreed-upon measure for settling debts in the future. This concept is essential because it underpins the trust that allows money to be used not just for immediate transactions but also for credit agreements. If money is accepted today for current transactions, it needs to be trusted to be accepted for transactions that consumers or borrowers commit to paying for at a later date. The standard of deferred payment is an underlying principle in loans and future financial agreements, which are stated in monetary terms. This principle is crucial for the functioning of an economy as it enables people to make purchases and enter contracts knowing they can fulfill these obligations in the future.