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Topic Functions of money
Asked 2 times across 2 UPSC exams, peaking in 2021.
Key insights
- Most tested in CAPF — 1 of 2 PYQs
- Most asked in 2021
- Recurs across 1 years (2021–2021)
How it travelled across exams
First appearance in each exam — the same idea, reframed.
CAPF 2021 → CDS 2021
How the concept evolved
Rising — more than half its appearances (2 of 2) are since 2016.
Sample questions
You've seen the pattern — here are a few of the actual PYQs.
CAPF2021
For anything to be recognized as money, it needs to have which of the following characteristics?
- Act as an intermediate in the exchange process
- Standard unit for quoting prices
- Must be easily divisible
- Have higher value in alternative uses
Select the correct answer using the code given below.
- A 1, 2 and 4
- B 2 and 3 only
- C 1, 2 and 3 ✓
- D 1, 3 and 4
✓ Correct answer: (C)
Economy › Money/Banking/Finance
CDS2021
Which one of the following is not a function of money?
- A Acts as an intermediate in the exchange process
- B Acts as a store of value
- C Used as the unit of account
- D Used for regulating consumption ✓
✓ Correct answer: (D)
Economy › Money/Banking/Finance
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