The primary functions of money are:
A) velocity, liquidity, and transactions.
B) speculative demand, measure of value, and precautionary demand.
C) a medium of exchange, a unit of account, and a store of value.
D) a store of value, heterogeneity, and a medium of exchange.

Question

Quizplus · Accepted Answer

The functions of money are to act as a medium of exchange, unit of account, and store of value. It facilitates economic transactions, provides a common measure of value, and allows people to save and defer consumption to the future. Options A, B, and D are incorrect as they do not accurately describe the primary functions of money.

The Primary Functions of Money Are