When money is accepted as payment for a good or service, it is being used as a
A) medium of exchange.
B) store of value.
C) unit of account.
D) a mechanism for transforming current purchases into future purchases.

Question

Quizplus · Accepted Answer

When money is accepted as payment for a good or service, it is being used as a medium of exchange because the buyer is exchanging money for the good or service. This is one of the primary functions of money.

B) Store of value is a function of money that refers to the ability of money to hold its value over time, allowing individuals to save and plan for the future.

C) Unit of account is a function of money that refers to its ability to measure the value of goods and services.

D) A mechanism for transforming current purchases into future purchases is not a function of money.

When Money Is Accepted as Payment for a Good or Service