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Economics glossary · Policy and the financial sector

Standard of deferred payment

What standard of deferred payment means in economics, as one of the four functions of money, with an example and a question to test yourself.

Definition
Standard of deferred payment
A standard of deferred payment lets people buy today and pay in the future, because loans and future agreements are stated in money.
Example

Can you think of an example of standard of deferred payment?

Test yourself

Can you name the four functions of money?

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