Money and Inflation

Problem of mutual adjustment of wants, Difficulty in storing value, Problem of measurement of value

The three main limitations of barter system are: double coincidence of wants problem, difficulty in storing wealth for future, and problems in measuring relative values of different goods.

Medium of exchange, Store of value, Measure of value

The three primary functions of money are: medium of exchange (facilitating trade), store of value (saving for future), and measure of value (pricing goods and services).

True

True. Money acts as a medium of exchange and eliminates the need for double coincidence of wants that was a major problem in the barter system.

Constant rise in price levels, Purchasing power decreases, Price rise in all sectors

Main characteristics of inflation include persistent price rise across all sectors of economy and consequent decrease in purchasing power of money.