The three functions of money are
A)store of value,medium of exchange,payment specie.
B)store of value,unit of account,bank settlement.
C)store of value,unit of account,to regulate the economy.
D)store of value,unit of account,medium of exchange.

Question

Quizplus · Accepted Answer

The three functions of money are store of value (allowing one to save purchasing power for future use), unit of account (providing a common measure of the value of goods and services), and medium of exchange (facilitating transactions and trade). Choice D includes all three functions, while the other choices either include an incorrect function (A and B suggest "payment specie" and "bank settlement" as functions, which are not universally recognized) or exclude a necessary function (C only includes "store of value" and "unit of account").

The Three Functions of Money Are