Multiple choice

Which of the following is a function of money?

  1. Medium of exchange

  2. Store of value

  3. Transfer of value

  4. All the above

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Money serves three primary functions in an economy: as a medium of exchange for transactions, as a store of value over time, and as a unit of account/transferred value for measuring worth. All these functions are essential and valid.