A medium of exchange, a unit of account, and a store of value are all used to describe

Question

Quizplus · Accepted Answer

The three characteristics listed are fundamental functions of money, making option B the correct choice. Money serves as a medium of exchange by allowing individuals to trade goods and services with a widely accepted form of payment. It also serves as a unit of account, meaning prices are generally quoted in terms of money. Finally, money is a store of value because it can be saved for future purchases, unlike perishable goods in a barter system. Options A and C are not accurate descriptions of these functions.

A Medium of Exchange, a Unit of Account, and a Store