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

Question

Quizplus · Accepted Answer

The three functions of money are medium of exchange (used for transactions), unit of account (used to measure the value of goods and services), and store of value (used to hold and save value over time). Option A includes all three of these functions. Option B includes pricing and means of payment, but not unit of account or store of value. Option C includes medium of exchange and ability to buy goods and services, but not unit of account or store of value. Option D includes medium of exchange and means of payment, but not unit of account or store of value.

The Functions of Money Are