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

Question

Quizplus · Accepted Answer

The three main functions of money are medium of exchange (used to buy/sell goods and services), unit of account (used to measure value or price), and store of value (holds purchasing power over time). Option A includes all three functions. Option B is incorrect because the ability to buy goods and services and pay off debts are both encompassed within the broader function of medium of exchange. Option C is incorrect because checking accounts are not a function of money, but rather a type of financial account used to store and access money. Option D is incorrect because credit cards are not a form of money, but rather a tool for accessing credit or debit accounts. Option E is incorrect because money is not commonly used as a barter mechanism in modern economies.

The Functions of Money Are