The functions of money are
A)medium of exchange,unit of account and store of value.
B)credit cards,cheque accounts,currency and coins.
C)store of value,use as a barter mechanism,and unit of account.
D)medium of exchange,the ability to buy goods and services,and cheque accounts.
E)medium of exchange,the ability to buy goods and services,and the ability to pay off debts.

Question

Quizplus · Accepted Answer

The three main functions of money are medium of exchange (ability to use it to buy goods and services), unit of account (ability to measure value in terms of money), and store of value (ability to hold value over time). Option A includes all three functions, making it the best choice. Option B only lists different types of money without discussing their functions, Option C includes a barter mechanism which is not relevant to money, and Option D only lists two functions of money. Option E is also incomplete, as it only lists buying goods and services and paying off debts, but does not mention the function of measuring value.

The Functions of Money Are