Which of the following is a correct listing of money's functions?Group of answer choicessource of credit, value of transaction costs, unit of bartermedium of barter, medium of exchange, medium of transactionsunit of barter, unit of accout, a unit of incomestore of value, store of exchange, measure of accountstore of value, medium of exchange, unit of account
Question
Which of the following is a correct listing of money's functions?Group of answer choicessource of credit, value of transaction costs, unit of bartermedium of barter, medium of exchange, medium of transactionsunit of barter, unit of accout, a unit of incomestore of value, store of exchange, measure of accountstore of value, medium of exchange, unit of account
Solution
The correct listing of money's functions is "store of value, medium of exchange, unit of account". These are the three primary functions of money in an economy.
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Store of Value: Money can be saved and used in the future. It retains its value over time.
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Medium of Exchange: Money is used to buy and sell goods and services. It facilitates transactions because it is universally accepted.
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Unit of Account: Money is used to measure the value of goods and services. It provides a standard measure and allows for comparison of the value of different goods and services.
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