ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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medium of exchange, store of value, unit of account
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medium of exchange, store of value, provides barter
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store of value, medium of exchange, creates instability
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None of the above
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Detailed explanation-1: -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. Modern economies use fiat money-money that is neither a commodity nor represented or “backed” by a commodity.
Detailed explanation-2: -Money facilitates transactions of goods and services as a medium of exchange. Producers sell their goods to wholesalers in exchange of money. Wholesalers, in turn, sell their goods to the retailers and the retailers sell these goods to the consumers in exchange for money.
Detailed explanation-3: -It is an essential function of money. ii) Measure of value: Money serves as a measure of value. The value of all goods and services is expressed in terms of money.
Detailed explanation-4: -Money is anything that serves as a medium of exchange. Other functions of money are to serve as a unit of account and as a store of value.
Detailed explanation-5: -Money must serve as a measure of value and a medium of exchange.