Which of the following describes the basic function of money?
A) store of purchasing power
B) standard of value
C) medium of exchange
D) liquidity

Question

Quizplus · Accepted Answer

Money serves as a medium of exchange, meaning it is accepted as payment for goods and services. This allows for transactions to occur without the need for bartering or other forms of payment.
Additional information:
- Store of purchasing power refers to money's ability to hold value over time and be used for future purchases.
- Standard of value refers to money's ability to serve as a common unit of measurement for pricing goods and services.
- Liquidity refers to money's ability to be easily converted into cash without a significant loss of value.

Which of the Following Describes the Basic Function of Money