Money's principal function is to serve as a
A)standard for making loans.
B)standard for credit reporting.
C)medium of exchange.
D)method for storing wealth.

Question

Quizplus · Accepted Answer

The primary function of money is to act as a medium of exchange, meaning it facilitates transactions by serving as a commonly accepted medium of payment for goods and services. While money can also be used as a store of value and a standard for making loans, these are secondary functions that stem from its primary use as a medium of exchange. Money's function as a standard for credit reporting is not a core function, as credit reporting can be done using various other financial metrics besides money.

Money's Principal Function Is to Serve as a