Money and Credit Test - 16

CRISIL (formerly Credit Rating Information Services of India Limited) is an Indian analytical company providing ratings, research, and risk and policy advisory services and is a subsidiary of American company S&P Global.

CRISIL, was the first credit rating agency in India, introduced in 1988 by the ICICI and UTI jointly with share capital coming from SBI, LIC and United India Insurance Company. In April 2005, US based credit rating agency S&P acquired the majority shares of company. Hence, correct answer is option D.

Plastic money refers to the hard plastic cards we use every day in place of actual bank notes. For example ATM cards like credit card and debit card are electronic generated card that acts as plastic money at the time of buying of goods and services. Debit card is used to withdraw money from your bank account at the time of payment for something and credit card is used to generate credit in the name of your bank account for the purpose of electronic payment.

Money refers to a common medium of exchange that is issued under the law of government and acts as a legal tender for the whole country. The value of money refers to the goods and services which can be purchased by per unit of money. The value of money is unstable because of inflation or deflation in the economy due to which, the goods and services which can be purchased by per unit of money keeps on changing. 

Barter system of exchange had many difficulties like lack of double coincidence of wants, lack of a common unit of value, difficulty of future payments or contractual payments and difficulty of storage of value and transfer of value. 

Introduction of money which refers to a common medium of exchange that is issued under the law of government and acts as a legal tender for the whole country removed the difficulties of barter system through its various following functions:

1. Common medium of exchange 

2. Store of value

3. Common measure unit 

4. Serve as the standard of deferred payments 

Savings refers to the part of the income which is not spent on the consumption of goods and services in the economy. It is that portion of the income which is kept aside for an instant and then re-invested into some asset in order to generate more income through these savings. 

Money refers to an asset in the economy that acts as a common medium of exchange issued under the law of government and acts as a legal tender for the whole country. The money possess that following characteristics  

1. Common medium of exchange 

2. Store of value

3. Common measure unit 

4. Serve as the standard of deferred payments