Question

Read the following statements carefully :

Statement I : The measurement of value makes it easier to compare the relative worth of two commodities.

Statement II : Money facilitates the act of sale and purchase of goods and services.

In the light of the given statements, choose the correct option from the following :

• A. Statement I is true and Statement II is false.
• B. Statement I is false and Statement II is true.
• C. Both Statements I and II are true.
• D. Both Statements I and II are false.

Hint:

Money measures value and also makes buying and selling easy. Both statements are true.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
Money does several jobs. It is a unit of account (measure of value) and a medium of exchange. The question checks both.

Step 2: Check Statement I:
When every good is priced in rupees, we can compare two goods by their prices. A pen at Rs. 10 and a book at Rs. 100 show their relative worth at once.
So Statement I is true.

Step 3: Check Statement II:
In barter, both sides must want what the other has. Money removes this need. A seller takes money and later spends it on something else. Sale and purchase become easy.
So Statement II is true.

Step 4: Choose the option:
Both are true. (A) and (B) call one of them false, and (D) calls both false, so these are wrong.

Final Answer:
Both Statements I and II are true. This is option (C).