Question

Among the following, which are the functions of money? (A) Medium of exchange.
(B) Unit of account.
(C) Bartering.
(D) Store of value.

• A. (A), (B) and (D) only
• B. (A), (B) and (C) only
• C. (A), (B), (C) and (D)
• D. (B), (C) and (D) only

Hint:

Money has 4 classic functions: medium of exchange, unit of account, store of value, standard of deferred payments.

Answer 1

The Correct Option is A

Step 1: Identify money's primary roles.
- Facilitator of trade: Acts as a medium of exchange, superseding barter.
- Value benchmark: Serves as a unit of account for quantifying worth.
- Wealth preservation: Functions as a store of value for future consumption.
- Future transaction settlement: Used as a standard for deferred payments.
Step 2: Assess given options.
- (A) Medium of exchange → Accurate.
- (B) Unit of account → Accurate.
- (C) Bartering → Inaccurate; barter occurs in the absence of money.
- (D) Store of value → Accurate.
Step 3: Determine the correct functions.
Valid functions correspond to options (A), (B), and (D).
Final Determination: \[\boxed{(A), (B), (D)}\]