Logical Reasoning Question 28
Question; Direction; Study the following passage carefully and answer the questions given below:
A unit of account is an agreed measure for stating the prices of goods and services. Money also serves as a store of value and it holds value over time. Although money is not the only thing that stores values as houses and land also fulfills this function, however, money is different as it can be liquated immediately for other commodities. This stems from the idea that the modern economy is not only an exchange economy but a credit economy. Since, in reality different people want different things at different times which give more weight to liquidity of money. Why is money different from other exchanges? Find the assumption?
Options:
A) It serves as a store of value for the services
B) It has credit economy and exchange value
C) It has nominal value for the goods and services
D) It has high liquidity and can be exchanged easily
Show Answer
Answer:
Correct Answer; C
Solution:
- (c)
- Deductive reasoning is a logical process where conclusions are drawn from premises that are known or assumed to be true.
- Assumption(s)
- Degrees of a Characteristic Analogy The money is not the only thing that stores value, as houses and land also fulfill this function. However, money is different as it can be liquidated or exchanged immediately for other commodities and services.
BETA
