Which situation best illustrates the function of money as a measure of value?A.A banker decides to invest money into a new business an entrepreneur would like to start.B.A clothing designer decides to open a new factory overseas in order to lower labor costs.C.A company sets the price it charges for juice by checking how much different beverages cost at a local market.D.A farmer trades a truck full of vegetables to his neighbor in exchange for a new tractor.

Which of the following statement is TRUE about the economic functions of money?Group of answer choicesAll available answersMoney serves as a ‘Means of Payment’ since it can be viewed as a mechanism for exchange of goods or services in all types of transactions.Money acts as an ‘Unit of Account’ where, in the pricing of items, it becomes a standard unit of measurement of the value of goods or services.Money serves as a 'Store of Value' in that assets held in the form of money can be used as an investment for future use.

A homeowner uses a $10 bill to pay a neighbor for cutting his lawn. The neighbor uses the $10 bill to buy dinner at a restaurant. That $10 bill is worth the same amount to the homeowner, the neighbor, and the restaurant. This is an example of which function of money?A.Store of valueB.Transfer of valueC.Standard of deferred paymentD.Measure of value

How does money function as a medium of exchange?A.It has a value determined by the government.B.It helps consumers compare the value of products.C.It holds its value over time or when transferred.D.It allows people to more easily buy and sell products.

Which does not pertain to how money works.a.Medium of exchangeb.Equalize demand and supplyc.Measure of valued.Store of value

The value of a unit of money, such as the dollar, always varies:Question 39Select one:a.directly with the price of gold.b.inversely with the price of gold.c.inversely with the average price of gold and silver.d.inversely with the average level of prices.