The primary functions of money are:
A) velocity, liquidity and transactions.
B) speculative demand, measure of value and precautionary demand.
C) a medium of exchange, a measure of value and a store of value.
D) a store of value, heterogeneity and a medium of exchange.

Question

Quizplus · Accepted Answer

Money serves as a medium of exchange, which means it allows for the smooth exchange of goods and services. It also serves as a measure of value, providing a common denominator to measure the prices of goods and services. Finally, it serves as a store of value, allowing individuals to save their wealth for future use.

The Primary Functions of Money Are