Question

To be effective, an item used as money should serve several functions. Select the statement that best describes money's function as a standard of deferred payment.

a. That a currency can be used to express the value goods and services that are both relatively expensive and goods and services that are relatively cheap.
b. That the purchasing power of a currency is relatively stable over time.
c. That people are willing to accept a currency in the future as compensation for debts accrued earlier.
d. That a currency is widely accepted in exchange for goods and services and therefore makes economic transactions easier.

Answer 1

c. That people are willing to accept a currency in the future as compensation for debts accrued earlier.

Step-by-step explanation:

Money defines the legal tender i.e. offically issued and that involved the notes, currencies, coins that are circulated via medium of exchange that govern by the government.

So here the people would to accept the currency in the future that become compensation for the debt that accrued earlier

Hence, the option c is correct