Money is employed as a _____ because it enables people to save the money they earn today and use it to buy goods and services later.
A) medium of exchange
B) unit of account
C) store of value
D) barter instrument

Question

Quizplus · Accepted Answer

Money serves as a store of value because it can be saved and used in the future to purchase goods and services. While it also functions as a medium of exchange (A) because it is used to facilitate transactions and as a unit of account (B) because it is used to measure the value of goods and services, these functions do not directly relate to the ability to save money for future use. The term "barter instrument" (D) is not a commonly used concept in economics.

Money Is Employed as a _____ Because It Enables People