ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If we put RM25 in our piggy bank and two weeks later, we still have RM25. What function has money fulfilled?
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Medium of exchange
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Unit of account
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Durability
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Store of value
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Explanation:
Detailed explanation-1: -Money has a store of value because it is an asset that can be invested, stored in a bank, left in a safe at home, and then later used to purchase something in the future. Store of value is an important money function because it helps facilitate trade in the future.
Detailed explanation-2: -The measure of value is the function of money that enables the values of different goods and services to be compared, also referred to as a unit of value.
Detailed explanation-3: -To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.
Detailed explanation-4: -Medium of exchange is the primary function of money.
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