Chuck and Paula want to buy their first house. They have done online research and determined that most houses having the features they want in the area where they live cost around $350,000. They hire a real estate agent who helps them find and buy a house for $345,000. What function of money does this scenario best describe?

Question

Quizplus · Accepted Answer

This scenario best describes money functioning as a measure of value. In this function, money serves as a common standard or yardstick of the value of goods and services. Thus, money is a common denominator that allows people to compare different goods and services that can be consumed on a particular income level.

Chuck and Paula Want to Buy Their First House