The three functions of money are:
A)medium of exchange,store of value,and measure of liquidity
B)conduit for international trade,store of value,and standard of value
C)medium of exchange,store of value,and standard of value
D)inflation hedge,measure of liquidity,and medium of exchange

Question

Quizplus · Accepted Answer

The three functions of money are medium of exchange (used for buying and selling goods and services), store of value (able to hold its value over time), and standard of value (used as a unit of measurement for prices and values). Option C correctly identifies all three functions. Option A is incorrect because "measure of liquidity" is not a recognized function of money. Option B is also incorrect because "conduit for international trade" is not a function of money, but rather a result of its use as a medium of exchange. Option D is incorrect because "inflation hedge" is not a function of money, but rather a characteristic of some types of assets.

The Three Functions of Money Are