The functions of money are
A) interest rates, prices and output.
B) medium of exchange, unit of account, and store of value.
C) currency, deposits, and traveler's checks.
D) M1, M2 or currency.

Question

Quizplus · Accepted Answer

The functions of money are medium of exchange (used to facilitate transactions and trade), unit of account (used to measure the value of goods and services), and store of value (used to hold value over time). Interest rates, prices, and output are economic variables that are influenced by the use of money, but they are not functions of money itself. Currency, deposits, and traveler's checks are different forms of money, but they do not describe the functions of money. M1 and M2 are measures of the money supply, but they do not describe the functions of money.

The Functions of Money Are