The primary functions of money are:
A)velocity, liquidity and transactions.
B)speculative demand, measure of value and precautionary demand.
C)a medium of exchange, a measure of value and a store of value.
D)a store of value, heterogeneity and a medium of exchange.
E)currency value, fiat value and accepted value.

Question

Quizplus · Accepted Answer

The primary functions of money are to serve as a medium of exchange (used to buy and sell goods and services), a measure of value (determines the relative worth of goods and services), and a store of value (retains purchasing power over time). Therefore, option C - a medium of exchange, a measure of value, and a store of value - is the best choice.

The Primary Functions of Money Are