ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is NOT a function of money?
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medium of exchange
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unit of account
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stores value
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meeting all 6 characteristics
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Explanation:
Detailed explanation-1: -The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability. Let’s compare two examples of possible forms of money: A cow. Cattle have been used as money at different points in history.
Detailed explanation-2: -Therefore, power indicator is not a function of money.
Detailed explanation-3: -Good Money has many characteristics like Stability, homogeneity, profitability, divisibility, durability, etc. The supply of Money is not included in the characteristics of Money.
Detailed explanation-4: -So money serves all of these functions-it is a medium of exchange, store of value, unit of account, and standard of deferred payment.
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