Standard_of_deferred_payment | TriviaQuestions.online

⭐ Core Definition: Standard of deferred payment

In economics, standard of deferred payment is a function of money. It is the function of being a widely accepted way to value a debt, thereby allowing goods and services to be acquired now and paid for in the future.

The 19th-century economist William Stanley Jevons, influential in the study of money, considered it to be one of four fundamental functions of money, the other three being medium of exchange, store of value, and unit of account. However, most modern textbooks now list only the other three functions, considering standard of deferred payment to be subsumed by the others.

↓ Menu

>>>PUT SHARE BUTTONS HERE<<<

👉 Standard of deferred payment in the context of Money

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are: medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment.

Money was historically an emergent market phenomenon that possessed intrinsic value as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value. Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private", in the case of the United States dollar.

↓ Explore More Topics

In this Dossier

⭐ Core Definition: Standard of deferred payment
👉 Standard of deferred payment in the context of Money
Standard of deferred payment in the context of Legal tender

Standard of deferred payment in the context of Legal tender

Legal tender is a form of money that courts of law are required to recognize as satisfactory payment in court for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which, when offered ("tendered") in payment of a debt, extinguishes the debt. There is no obligation on the creditor to accept the tendered payment, but the act of tendering the payment in legal tender discharges the debt.

It is generally only mandatory to recognize the payment of legal tender in the discharge of a monetary debt from a debtor to a creditor. Sellers offering to enter into contractual relationship, such as a contract for the sale of goods, do not need to accept legal tender and may instead contractually require payment using electronic methods, foreign currencies or any other legally recognized object of value.

↑ Return to Menu

Standard of deferred payment in the context of "Money"

⭐ In the context of Money, a standard of deferred payment is considered…

⭐ Core Definition: Standard of deferred payment

👉 Standard of deferred payment in the context of Money

Standard of deferred payment in the context of Legal tender