The three important functions of money are _____
A) serving as a medium of exchange, facilitating trade, and serving as a unit of account.
B) serving as a unit of account, facilitating trade, and serving as a store of value.
C) serving as a store of value, facilitating trade, and ensuring a double coincidence of wants.
D) facilitating trade, serving as a medium of exchange, and serving as a unit of account.
E) serving as a medium of exchange, a unit of account, and a store of value.

Question

Quizplus · Accepted Answer

The three important functions of money are serving as a medium of exchange (allowing for goods and services to be traded easily), serving as a unit of account (providing a standardized way to measure the value of goods and services), and serving as a store of value (maintaining its purchasing power over time). Choice E correctly identifies all three functions.

The Three Important Functions of Money Are _____