Q.Define money and state Crowther's classification of its functions.

The correct option is (B) Robertson, who defined money by its general acceptability in exchange.

Among the descriptive definitions of money, D. H. Robertson emphasised general acceptability: money is anything that is widely accepted in payment for goods or in discharge of business obligations. The definition in the question — that whatever is universally accepted in exchange for goods or services is money — reflects exactly this acceptability approach. Pigou, Marshall and Keynes gave their own definitions, but the acceptability-in-exchange phrasing here corresponds to Robertson.

Exchanging rice for clothes directly is the barter system — option (c).

In the barter system (C-C exchange), commodities are exchanged directly for other commodities without the use of money as a medium of exchange. Giving rice and receiving clothes in return is a classic example. This system worked only where there was a double coincidence of wants, and its many difficulties (lack of a common measure of value, indivisibility, absence of a store of value, etc.) eventually led to the invention of money. The other options — monetary, banking and loan systems — all involve money, so they do not describe a direct goods-for-goods exchange.

Money is anything generally accepted as a medium of exchange, measure of value, store of value and standard of deferred payments.

Economists define money functionally — as anything that is generally accepted by people in exchange for goods and services and in settlement of debts. In the words of economists like Crowther, money is "anything that is generally acceptable as a means of exchange and that at the same time acts as a measure and store of value." Its main functions are: (i) medium of exchange, (ii) measure/unit of value, (iii) store of value, and (iv) standard of deferred payment. Money removes the difficulties of the barter system, especially the need for a double coincidence of wants.