Which statement is true?

Question

Quizplus · Accepted Answer

One of the basic functions of money is to provide a standard of value, meaning it can be used to compare the value of different goods and services.

Option A is incorrect as the money supply is not fixed by law and can be changed through various monetary instruments such as open market operations and reserve requirements.

Option B is incorrect as most modern economies are not on a gold standard and the value of money is not backed solely by gold.

Option C is incorrect as credit cards are not a form of money but rather a means of accessing credit or pre-existing funds.

Option D is incorrect as during times of inflation, the value of money decreases and it does not make a good store of value.

Which Statement Is True