The functions of money are
A) medium of exchange and the ability to buy goods and services.
B) medium of exchange, unit of account, and store of value.
C) pricing, contracts, and means of payment.
D) medium of exchange, unit of account, and means of payment.

Question

Quizplus · Accepted Answer

The functions of money are medium of exchange, unit of account, and store of value. Medium of exchange refers to using money to buy goods and services, unit of account refers to using money as a standard unit of measurement for prices and values, and store of value refers to using money to save and transfer purchasing power over time. Pricing, contracts, and means of payment are all related to the functions of money, but are not the primary functions themselves.

The Functions of Money Are