Which of the following represents a function of money?
A) medium of exchange
B) unit of accounting
C) standard of deferred payment
D) all of the above

Question

Quizplus · Accepted Answer

All three options (medium of exchange, unit of accounting, and standard of deferred payment) are functions of money. Money serves as a medium of exchange by being readily accepted in exchange for goods and services. It acts as a unit of accounting by providing a common measure of the value of goods and services, which allows transactions to be compared and accounted for in a standard way. Money also serves as a standard of deferred payment by providing a means to settle debts and obligations over time.

Which of the Following Represents a Function of Money