Which list correctly names money's functions?
A) a unit of account, a store of value, a medium of exchange
B) barter, a double coincidence of wants, a unit of account
C) transaction costs, a medium of exchange, a unit of account
D) liquidity, barter, a medium of exchange

Question

Quizplus · Accepted Answer

Money has three main functions: as a medium of exchange for transactions, as a unit of account to measure value, and as a store of value to save purchasing power over time. Barter and a double coincidence of wants refer to the difficulties of conducting transactions without money, while liquidity is a characteristic of money rather than a function. Transaction costs may be affected by the use of money but are not a primary function of it.

Which List Correctly Names Money's Functions