Indian Economy·MCQ Practice

Functions of Money — MCQ Practice

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Version 1Updated 7 Mar 2026

Interactive MCQ Practice

Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 5 questions available.

Q1easy

Which of the following is NOT considered a primary function of money?

Q2medium

Consider the following statements regarding the functions of money in the Indian economy: 1. The widespread adoption of UPI primarily enhances money's role as a medium of exchange. 2. Persistent high inflation strengthens money's function as a store of value by encouraging savings. 3. The legal tender status of the Indian Rupee is primarily derived from the Coinage Act, 2011, for all denominations. Which of the statements given above is/are correct?

Q3medium

Which of the following scenarios best illustrates money performing its function as a 'standard of deferred payment'?

Q4hard

In the context of the Indian economy, which of the following statements about the Digital Rupee (e₹) is most accurate regarding its functions?

Q5medium

Which of the following is a direct consequence of money functioning as a 'unit of account'?

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