Question

Match List I with List II 

 

• A. A - II, B - I, C - IV, D - III, E - V
• B. A - I, B - II, C - III, D - V, E - IV
• C. A - III, B - V, C - IV, D - I, E - II
• D. A - III, B - I, C - IV, D - II, E - V

Hint:

"Legal tender" is backed by law and cannot be refused. "Near money" is not cash itself but can be converted into cash very quickly (e.g., bonds, fixed deposits).

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
Money has evolved through various forms over time, classified by legal status, intrinsic value, and ease of conversion.

Step 2: Detailed Explanation:
Let us match the types of money with their definitions:
- Standard money: Money whose face value is equal to its intrinsic commodity value (such as gold or silver coins). (A - III)
- Legal tender money: Money that people are legally required to accept in payment of debts and transactions. (B - I)
- Fiduciary money: Money accepted based on trust between the payer and the payee, where the face value is greater than its intrinsic value (such as paper currency or cheques). (C - IV)
- Money proper: The actual, physical medium of exchange that actively circulates within the economy. (D - II)
- Near money: Non-cash liquid assets that are highly stable and easily convertible into cash, representing claims to money (such as treasury bills or savings bonds). (E - V)
Thus, the correct match is A - III, B - I, C - IV, D - II, E - V.

Step 3: Final Answer:
The matching sequence is correctly represented by Option (D).